CB solver HW
Capital Budgeting
• Submit using Assignment tab in eLearning by uploading your completed excel file.
• Open a new (fresh) excel workbook to perform you calculations and make sure to highlight each of your final answers.
• Your excel file has to be named to reflect your name and the assignment number (for example you may name the file: dupinderjeet_kaurCBsolver)
• You are allowed only one submission, so please make sure it is the correct one.
• Work Independently and do not use class exercise template (or any other template)
Q: Eaton Medical Services is evaluating 10 independent indivisible projects, all with positive NPV. The company's capital budgeting for the year is limited to a
maximum of $5,000,000.
(a) Use solver to find the optimum combination of projects the company should accept, under the assumption that A and B are mutually exclusive and one of them has
to be selected.
(b)Ignore the constraint from previous part, assume that project \"I\" has to be accepted. Use solver to find optimum combination of projects the company should accept
now.
Run solver with Simplex and GRG nonlinear, and accept the best answer
Project Cost NPV
A 1,061,191 122,737
B 561,758 58,102
C 1,647,849 280,660
D 1,026,020 89,365
E 191,870 17,568
F 1,333,625 76,960
G 3,102,642 123,240
H 275,568 79,367
I 2,044,070 60,506
J 1,017,567 56,690
