(b) A corporation is considering four possible investment opportunities. The following table presents information about the investment (in Rs thousand) profile: Project Present value of Capital Required Year-wise by expected return projects Year 1 Year 2 Year 3 1 650 700 550 400 2 700 850 550 350 3 225 300 150 100 4 250 350 200 - Capital Available 1200 700 400 for investment In addition projects I and 2 are mutually exclusive and project 4 is contingent on the prior acceptance of project 3. Formulate an P model to determine which project should be accepted and which should be rejected to maximize the present value from accepted projects (13)

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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(b) A corporation is considering four possible investment opportunities. The
following table presents information about the investment
(in Rs thousand) profile:
Project
Present value of Capital Required Year-wise by
expected return
projects
Year 1
Year 2
Year 3
1
650
700
550
400
2
700
850
550
350
3
225
300
150
100
4
250
350
200
-
Capital Available
1200
700
400
for investment
In addition projects I and 2 are mutually exclusive and project 4 is contingent
on the prior acceptance of project 3. Formulate an P model to determine which
project should be accepted and which should be rejected to maximize the
present value from accepted projects
(13)
Transcribed Image Text:(b) A corporation is considering four possible investment opportunities. The following table presents information about the investment (in Rs thousand) profile: Project Present value of Capital Required Year-wise by expected return projects Year 1 Year 2 Year 3 1 650 700 550 400 2 700 850 550 350 3 225 300 150 100 4 250 350 200 - Capital Available 1200 700 400 for investment In addition projects I and 2 are mutually exclusive and project 4 is contingent on the prior acceptance of project 3. Formulate an P model to determine which project should be accepted and which should be rejected to maximize the present value from accepted projects (13)
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