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| Teaching Since: | May 2017 |
| Last Sign in: | 434 Weeks Ago, 3 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4.42 Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled oil sales with Ford is a part of the re- quirement. Develop all possible mutually exclu- sive bundles under the additional following restrictions and select the best projects. The corpo- rate MARR is 10% per year.
a. A maximum of $4 million can be spent.
b. A larger budget of $5.5 million is allowed, but no more than two vendors can be selected.
c. There is no limit on spending.
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A -1.5 million 8 360,000
B -3.0 million 10 600,000
C -1.8 million 5 620,000
D -2.0 million 4 630,000
First cost, $ -2,000,000 -3,000,000 -10,000,000
Net income,
$ per quarter 300,000 100,000 400,000
Salvage value, $ 50,000 70,000 -
Life, years 4 8 00
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