Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for Ford Corporation manufacturing

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Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled oil sales with Ford is a part of the requirement. Develop all possible mutually exclusive bundles under the additional following restrictions and select the best projects. The corporate MARR is 10% per year.
(a) A maximum of $4 million can be spent.
(b) A larger budget of $5.5 million is allowed, but no more than two vendors can be selected.
(c) There is no limit onspending.
Dwayne has four independent vendor proposals to contract the nat
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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