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Mal-VX Present x Ellucian x | To Do A X Quizzes Xx CA priva x1b Home] /d21/lms/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv &qi-3848618&cfql=0&dnb=0&fro f Final Exam-Q1-Q11 3 6 9 ation XBXE Question 10 (1 point) Listen A private equity firm is considering five competing projects in which to invest in the upcoming quarter. The firm needs to decide how to allocate its available capital based upon the combination of projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: D A a x I Present x Ellucian x To Do A X Quizzes X CA priva xb Home xl b H s/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv=&qi=3848618&cfql=0&dnb-0&fromQB=0... Exam-Q1-Q11 2:19:40 elaps projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: XES XE 4%-5%B-6% -7%-5%E5 -xx-2xD <=0 **Xc=1 --1

Mal-VX Present x Ellucian x | To Do A X Quizzes Xx CA priva x1b Home] /d21/lms/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv &qi-3848618&cfql=0&dnb=0&fro f Final Exam-Q1-Q11 3 6 9 ation XBXE Question 10 (1 point) Listen A private equity firm is considering five competing projects in which to invest in the upcoming quarter. The firm needs to decide how to allocate its available capital based upon the combination of projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: D A a x I Present x Ellucian x To Do A X Quizzes X CA priva xb Home xl b H s/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv=&qi=3848618&cfql=0&dnb-0&fromQB=0... Exam-Q1-Q11 2:19:40 elaps projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: XES XE 4%-5%B-6% -7%-5%E5 -xx-2xD <=0 **Xc=1 --1

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Mal-VX Present x Ellucian x | To Do A X Quizzes Xx CA priva x1b Home] /d21/lms/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv &qi-3848618&cfql=0&dnb=0&fro f Final Exam-Q1-Q11 3 6 9 ation XBXE Question 10 (1 point) Listen A private equity firm is considering five competing projects in which to invest in the upcoming quarter. The firm needs to decide how to allocate its available capital based upon the combination of projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: D A a
Transcribed Image Text:Mal-VX Present x Ellucian x | To Do A X Quizzes Xx CA priva x1b Home] /d21/lms/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv &qi-3848618&cfql=0&dnb=0&fro f Final Exam-Q1-Q11 3 6 9 ation XBXE Question 10 (1 point) Listen A private equity firm is considering five competing projects in which to invest in the upcoming quarter. The firm needs to decide how to allocate its available capital based upon the combination of projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: D A a
x I Present x Ellucian x To Do A X Quizzes X CA priva xb Home xl b H s/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv=&qi=3848618&cfql=0&dnb-0&fromQB=0... Exam-Q1-Q11 2:19:40 elaps projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: XES XE 4%-5%B-6% -7%-5%E5 -xx-2xD <=0 **Xc=1 --1
Transcribed Image Text:x I Present x Ellucian x To Do A X Quizzes X CA priva xb Home xl b H s/quizzing/user/attempt/quiz start frame auto.d21?ou-3101790&isprv=&qi=3848618&cfql=0&dnb-0&fromQB=0... Exam-Q1-Q11 2:19:40 elaps projects (denoted as A to E) selected to maximize returns (based upon net present value (NPV)). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk (given as a percentage of the initial investment). The company has $43 million in capital to allocate, with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met: (i) if project B is selected, then project E is also selected; (ii) one of the two projects A and C must be selected but not both; (iii) at least one of projects A, B, and D is selected. Table 1: Project Data Project NPV (MS) Risk (%) Capital (MS) A 19 4 14 B 22 5 10 C 24 6 12 D 27 7 15 E 21 5 13 The RISK constraint may be stated as: XES XE 4%-5%B-6% -7%-5%E5 -xx-2xD <=0 **Xc=1 --1
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