Question: positive NPV projects available to it. Our rm has 15 investment opportunities and must choose between them with limited resource-c available. See Attachment #1. The

positive NPV projects available to it. Our rm has
positive NPV projects available to it. Our rm has 15 investment opportunities and must choose between them with limited resource-c available. See Attachment #1. The goal of this capital budgeting exercise is to choose the optimal mix of projects that maximizes total NPV of the rm while adhering to the following constraints: 0 Projects #1 and #2 are mutually exclusive. Projects #6 and #7 are mutually exclusive and one must be chosen. If projects #8 and #9 are both chosen, then time 0 investment is reduced by $59 (000). Ir Total number of people available is 30. 0 Total cash available in time 0 is $5,000 {000). Also, use the following assumptions: 0 Use the Capital Asset Pricing Model to determine the appropriate discount rates for the individual projects. - risk free rate is 3.5% expected market risk premium is 5.5% Cases to 'Solve' Case A: Determine the optimal project mix with 30 people and $5,000 available. Case B: Determine the optimal project mix with 30 people and $5, 500 available. Case C: Determine the optimal project mix with 30 people and $6. 000 available. Case D: Determine the optimal project mix with 30 people and $6, 500 available. Case E: Determine the optimal project mix with 30 people and $6,600 available. Case F: Determine the optimal project mix with 31 people and $6,600 available. Case G: Determine the optimal project mix with 32 people and $6,600 available. Case H: Determine the optimal project mix with 33 people and $6 600 available. Case 1: Determine the optimal project mix with 34 people and $6 600 available. Note: For each case A-vG and I start with all indicators set to l. [l I l l. l..] For ease H, start with all indicators set to 1 except for Project #1. [0.1.1.]...1] Analysis Questions 1.) Given the constraints listed. what is the maximum total NPV the company could achieve if there were not any people or budgetary constraints? 2.) Explain what is happening in cases A through 1. What would you recommend to the firm's CEO concerning the sensitivity of all constraints? 3.) How would you improve this analysis? (What would you add to this spreadsheet in terms of additional information or additional analysis?)

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