Question: (20)5. Proposals A, B, C, D, E and F are being considered with money flows over 10 years. A B C D E F Investment
(20)5. Proposals A, B, C, D, E and F are being considered with money flows over 10 years. A B C D E F Investment $35,000 $10,000 $60,000 $45,000 $15,000 $55,000 Net Annual Benefit $7,000 $2,200 $10,000 $12,000 $2,400 $14,000 Salvage Value $3,000 $0 $5,000 $2,000 $500 0 Proposal (A and D) are mutually exclusive, (C and F) are also mutually exclusive, and proposal B depends on C or F. The MARR is set at 8%. a) Which proposal(s) should be selected if the amount of money available for investment is $110,000? b) Formulate the problem with Integer Programming.
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