A pharma company is considering five divisible projects with the following details
Choices 1 2 3 4 5
Initial Investment $300,000.00 $400,000.00 $450,000.00 $500,000.00 $600,000.00
Annual Receipts $205,000.00 $230,000.00 $245,000.00 $260,000.00 $290,000.00
Annual Disbursements $125,000.00 $130,000.00 $140,000.00 $135,000.00 $150,000.00
Salvage Value $50,000.00 $50,000.00 $60,000.00 $75,000.00 $75,000.00
The company uses a 10 year planning horizon and a MARR of 10% and has a capital limit of 1 million dollars. Determine the optimum portfolio of fully and partially selected investments. Perform a sensitivity analysis on plus or minus 10% on the capital investment. If project 3 has to be fully funded, will it change the funding selection and or the percentages? Please answer in excel