Question: Answer These Questions: Use linear programming and a spreadsheet-based solution technique to select from the independent unequal-life projects in Problem 12.17. Solve the capital budgeting
Answer These Questions:





Use linear programming and a spreadsheet-based solution technique to select from the independent unequal-life projects in Problem 12.17. Solve the capital budgeting problem in Problem 12.20(a), using the linear programming model and a spreadsheet. Johnson and Johnson is expanding its first-aid products line for individuals allergic to latex. The research team comprised of doctors, engineers, and chemists has proposed the four projects esti- mated in Problem 12.18. Develop the linear programming model and use a spreadsheet to se- lect the projects to be funded. The MARK is 12% per year, and the budget limit is $16 million. All monetary values are in $1000 units Using the estimates in Problem 12.18 and repeated spreadsheet solution of the capital budgeting prob- lem for budget limits ranging from b = $5000 to b = $25,000, develop a spreadsheet chart that plots & versus the value of Z Danbrian M\f\fFor equipment that has a first cost of $10 000 and the estimated operating costs and year-end salvage values shown below, determine the economic ser- vice life at f = 10% per year Operating Cost, Salvage Year $ per Year Value, $ - 1030 7000 - 1700 5000 - 1300 4500 -2000 3000 2000 To improve package tracking at a UPS transfer fa- cility, conveyor equipment was upgraded with RFID sensors at a cost of $345,000. The operating cost is expected to be $148 000 per year for the first 3 years and $210,000 for the next 3 years. The salvage value of the equipment is expected to be $140,000 for the first 3 years, but due to obsoles- cence, it won't have a significant value after that. At an interest rate of 10% per year, determine (al The economic service life of the equipment and associated annual worth (b) The percentage increase in the AW of cost if the equipment is retained 2 years longer than the ESL\f
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