Your consulting firm has been doing well, and you believe it is time to add a new, related area of engineering services. To do so, you have identified the following five independent, divisible, equal-lived investments, each of which guarantees you can exit it after 4 years and have your initial investment returned to you.

Each year, you receive an annual return as noted below. Your MARR is 10 percent, and you have $250,000 to invest.

a. Determine the optimum portfolio, including which investments are fully or partially selected (if partial, give percentage). You may use Excel®; do not use SOLVER.

b. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage)
selected using (1) the current limit on investment capital, (2) plus 20 percent, and (3) minus 20 percent. Use Excel®
and SOLVER.

c. Determine the optimum portfolio and its PW, specifying which investments are fully or partially (give percentage)
selected using (1) the current MARR, (2) plus 20 percent, and (3) minus 20 percent. Use Excel® and SOLVER.

d. Determine the optimum investment portfolio and its PW when Investments 2 and 4 are indivisible and Investments 1, 3, and 5 are divisible. Use Excel® and SOLVER.

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Investment 1 2 3 5 Initial Investment $45,000 $60,000 $85,000 $100,000 $75,000 Annual Retum $4,000 $7,000 $9,000 $12,000 $11,000