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# Project Selection by NPV The TechnoBlast Company is looking at eight new projects for possible funding in the next four years. There is a specified...

Optimization problem. See attachment

Project Selection by NPV The TechnoBlast Company is looking at eight new projects for possible funding in the next four years. There is a specified amount of capital available for these eight projects in the next four years. Each project requires the largest commitment of capital funds in the first year for project startups with smaller amounts of capital required in the next three years. The annual revenues and non capital expenses associated with the projects have been estimated for the next 10 years and taking those into account, along with the capital costs, the Net Present Value (NPV) of after-tax cash flows have been calculated. Table 1 provides the relevant information. Table 1. Relevant financial data for project selection in \$1000 YEAR 1 2 3 4 Project NPV Capital Required by Year 1 \$220 \$160 \$40 \$30 \$20 2 \$200 \$120 \$35 \$25 \$15 3 \$185 \$135 \$40 \$30 \$20 4 \$125 \$85 \$10 \$10 \$10 5 \$455 \$120 \$25 \$20 \$20 6 \$240 \$155 \$45 \$30 \$25 7 \$500 \$175 \$60 \$50 \$40 8 \$150 \$85 \$15 \$10 \$5 Capital Available by Year \$500 \$150 \$100 \$100 Develop a Solver enabled spreadsheet to determine which of the eight projects should be funded.
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Microsoft Excel 12.0 Answer Report
Worksheet: [8369086.xls]Sheet1
Report Created: 02-10-2012 02:22:25 Target Cell (Max)
Cell
Name
\$D\$31 Max Z=...

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