(20 Points) A real estate development firm, is considering five possible development projects The following table shows the net present value that each project would generate, the number of personnels needed, as well as the amount of investment required to undertake the project Development Project (values in $ millions) 1 2 3 4 5 Profit 1 1 8 1 6 0 8 1 4 Capital required 6 11 10 4 7 Personnel 8 14 11 7 13 The owner has raised $20 million of investment capital The company is constrained from embarking on all projects by the number of available personnel (35) Which combination of projects will maximize the profit

The Answer is in the image, click to view ...

Question: (20 Points) A real-estate development firm, is considering five possible development projects. The following table shows the net present value that each project would generate,

(20 Points) A real-estate development firm, is considering five possible development projects. The following table shows the net present value that each project would generate, the number of personnels needed, as well as the amount of investment required to undertake the project.

	Development Project
(values in $ millions)	1	2	3	4	5
Profit	1	1.8	1.6	0.8	1.4
Capital required	6	11	10	4	7
Personnel	8	14	11	7	13

The owner has raised $20 million of investment capital. The company is constrained from embarking on all projects by the number of available personnel (35). Which combination of projects will maximize the profit?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Question 3 (100 points): A real-estate development film is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long-run profit...

Solve part b with excel showing formulas. If you have lingo software solve part a Question4. Ford Company is considering five possible development projects. The estimated long-run profit (net present...

please solve in excel using solver A real-estate development film is considering five possible development projects Using units of millions of dollars, the following table shows the estimated...

Hilltop Wealth Management (HWM) is considering six possible investment projects. The following table shows the estimated net present value (NPV) of the long-run profit that each project would...

******************WARNING******************** DO NOT COPY FROM THE OTHER CHEGG ANSWERS THEY ARE WRONG. IF YOU COPY AND PASTE I WILL DOWNVOTE. Please answer on your own: 1. Formulate a mathematical...

I need help writing therecommendation to the CFO (not the executive summary). I have already completed the attached excel workbook. Introduction: You have recently been hired as a Financial Analyst...

Hi! I need help on finishing what I could not figure out. I got the basic analysis part and tornado diagram finished. I need help on the breakeven and the CP part. If you could look over the WACC tab...

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

1 . A real - estate development firm, Peterson and Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long run...

Phelps Toy Company The Phelps Toy Company was considering the advisability of adding a new product to its line. Ike Barnes was in charge of new product development. Since the founding of the company...

Identify ions having the same electronic configuration as noble gases. What ion has the same electronic configuration as each noble gas? Choose all that apply. Ca+ H a. Ne As- I Sr+ Cs+ b. He S- Mg2+...

The CFO chooses you to determine whether to purchase a new machine. The new machine should save the company $700,000 annually. However, the new machine requires an additional $100,000 of net working...

Activity - Based Costing ( ABC ) assigns overhead costs based on a uniform rate for all activities. True False

11. Consider pricing a LIBOR corridor under the market model f. a. (4) The LIBOR corridor consists of a series of cash flow, Tjcj, at time Tj+1, j=0,1,,N1, with 1 cjK1,fj(Tj),K2,iffj(Tj)