Solve the following modifications of the capital budgeting model in Figure 6.5. (Solve each part independently of the others.)

a. Suppose that at most two of projects 3, 5, and 6 can be selected.

b. Suppose that if investment 5 is selected, then investment 1 must also be selected.

c. Suppose that at least one of investments 1 and 2 must be selected.

d. Suppose that investment 5 can be selected only if both investments 3 and 4 are selected.

Figure 6.5:

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Capital Budgeting Model Н G. 1 Capital budgeting model Range names used Budget Decisions =Model!$B$10:$H$10 Total_cost=Model!$B$14 Total_NPV=Model!$B$17 =Model!$D$14 3 Input data on potential investments ($ millions) 4 Investment 5 |Cost 2 $2.4 $2.7 12.5% 3 $3.5 $3.9 11.4% 4 $6.9 $4.5 $5.9 $6.8 15.3% $5.0 $5.6 $3.0 $3.3 10.0% 6 NPV 7 ROI $7.7 $5.1 13.3% 12.0% 11.6% 9 Decisions: whether to invest 10 1 if yes, 0 if no 11 1. 12 Budget constraint Total cost $14.9 13 14 Budget $15 15 | 16 Objective to maximize | 17 Total NPV $16.7