Question: Solve using Excel and show formulas. 8. A laboratory within Bayer is considering the five indivisible investment proposals below to further upgrade their diagnostic capabilities

8. A laboratory within Bayer is considering the five indivisible investment proposals below to further upgrade their diagnostic capabilities to ensure continued leadership and state-of-the-art performance. The laboratory uses a 10year planning horizon, has a MARR of 10 percent, and has a capital limit of $1,000,000. Section 15.2.1 For the original opportunity statement: a. Which alternatives should be selected to form the optimum portfolio for the lab? PROBLEMS 755 b. What is the present worth for the optimum investment portfolio? c. What is the IRR for the portfolio? In addition to the original opportunity statement, Bayer declares that Investments 2 and 4 are mutually exclusive, Investment 5 is contingent on 2 being funded, and at least two investments must be made. d. Now, which alternatives should Bayer select? e. What is the present worth for the resulting investment portfolio? f. What is the resulting IRR? Section 15.2.3 Again consider the original opportunity statement using SOLVER for sensitivity analysis: g. Determine the optimum portfolio (state the investments selected and the portfolio PW) using (1) the current limit on investment capital, (2) plus 20 percent, and (3) minus 20 percent. h. Determine the optimum portfolio (state the investments selected and the portfolio PW) using (1) the current MARR, (2) plus 20 percent, and (3) minus 20 percent
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To solve this problem using Excel well go through the following steps Calculate Net Present Value NPV for each investment Select investments for the o... View full answer
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