B. Problem Statement The Smooth Construction Company is planning to invest in several of eight (8) projects. Unfortunately, it faces a range of constraints such as budgetary, number of projects that it can supervise, and the relationship among projects (contingent and/or duplicative). The Company is seeking your assistance in selecting the projects that will maximize its Net Present Worth given different sets of constraints. All projects have the same lifespan. Projects Initial Cost NPW 300,000 65,000 B 250,000 45,000 190,000 35,000 D 375,000 50,000 E 325,000 75,000 F 425,000 85,000 320,000 80,000 H 450,000 70,000 MARR = 10% G Questions 27 to 31 a) Budget = $1,500,000 b) Projects F and H are discarded due to their initial cost. c) Projects A, B and C are mutually exclusive. Select at most two of these projects. d) Select project B if projects C and G are selected. e) Select a maximum of four (4) projects. f) Use the NPW decision criterion to determine the "best" feasible bundle of projects. 27 28. 29. 30. 31. The best investment bundle consists of projects The NPW ($) of the best investment bundle is The total cost ($) of the best investment bundle is Which project in the bundle would have the highest rank? The "lowest ranking" project in this bundle is 0-0-0