A6. Question 9Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised ofdoctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and usea spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetaryvalues are in PhP 1000 units.PROJECTS1234Investment, PhP-5,000 -8,000 -9,000 - 10,000Life, years5534Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates11,0005005,000021,7005005,000032,4005002,000043,00050017,00053,80010,500What project/s will be selected? ANSWER: Blank 1 and Blank 2What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas.How much is the total investment? ANSWER: Blank 4 millionBlank 1 Add your answerBlank 2 Add your answerBlank 3 Add your answerBlank 4Add your answer

Capital budgeting technique helps to evaluate the profitability of the mutually exclusive projects…

Question 9 Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised of doctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and use a spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetary values are in PhP 1000 units. PROJECTS 1 -5,000 5 Investment, PhP Life, years 2 1,000 1,700 2,400 3,000 3,800 3 -8,000-9,000 5 3 4 -10,000 4 Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates I 2 3 4 500 500 500 500 10,500 5,000 5,000 2,000 What project/s will be selected? ANSWER: Blank 1 and Blank 2 What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas. How much is the total investment? ANSWER: Blank 4 million 0 0 0 17,000

Question 9 Johnson and Johnson are expanding its first-aid products line for individuals allergic to latex. The research team comprised of doctors, engineers, and chemists has proposed the four projects estimated below. Develop the linear programming model and use a spreadsheet to select the projects to be funded. The MARR is 12% per year, and the budget limit is PhP16 million. All monetary values are in PhP 1000 units. PROJECTS 1 -5,000 5 Investment, PhP Life, years 2 1,000 1,700 2,400 3,000 3,800 3 -8,000-9,000 5 3 4 -10,000 4 Year P1 NFC Estimates, PhP per year P2 NFC Estimates P3 NFC Estimates P4 NFC Estimates I 2 3 4 500 500 500 500 10,500 5,000 5,000 2,000 What project/s will be selected? ANSWER: Blank 1 and Blank 2 What is the Optimal NetPW (Z value)? ANSWER: Blank 3 Note: do not use commas. How much is the total investment? ANSWER: Blank 4 million 0 0 0 17,000

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 7PROB

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