Below is the data for the spreadsheet for a project selection model:

               Project          NPV (return)       cash investment personnel requirements

1              75,000                 30,000                                         10

2              50,000                 45,000                                         5

3              25,000                 75,000                                       10

4              85,000                 30,000                                         4

5              50,000                 45,000                                         8

6              25,000                 75,000                                         7

7              95,000                 45,000                                         6

8              25,000                 60,000                                         1

9              75,000                 30,000                                         2

10            65,000                 45,000                                         2

You have $250,000 to invest and 36 people. Maximize NPV by approving/rejecting projects.

8: How many projects of the ten are approved?

A) 6

B) 4

C) 10
D) 5

9: If I told you that you cannot accept both projects #3 and project #4, would your current optimal solution change?

A) Yes; since we current accept both projects, we know the optimal answer would have to be different with an additional constraint.

B) No; since we are not accepting project #3 anyway, our current solution would still be optimal.

C) No; since we are not accepting project #4 anyway, our current solution would still be optimal.

D) No; since we are not accepting either project, our current solution would still be optimal.

E) There is no way we can tell unless we redefine the problem and rerun Solver.

10: Has project #3 been approved (in our optimal solution)?

A) Yes; this is one of the projects that has been approved.

B) No; there is enough spare (aka slack aka extra) cash, but not enough spare personnel.

C) No; there is enough spare personnel, but not enough spare cash to invest.
D) No; there is neither enough spare cash nor spare personnel.

11: Has project #8 been approved (in our optimal solution)?

A) Yes; this is one of the projects that has been approved.

B) No; there is enough spare (aka slack aka extra) cash, but not enough spare personnel.

C) No; there is enough spare personnel, but not enough spare cash to invest.
D) No; there is neither enough spare cash nor spare personnel.

12: What is the total amount of cash used for all accepted projects?

A) $ 480,000

B) $ 250,000

C) $ 360,000
D) $ 225,000

13: What is the total amount of personnel used for all accepted projects?

A) 36

B) 32

C) 40
D) 55

14: What is the total return obtained from all accepted projects?

A) $ 495,000

B) $ 330,000

C) $ 445,000

D) $ 570,000