Use the Data Shown Below to Answer the Following Question(s)

question 47

Multiple Choice

Use the data shown below to answer the following question(s) .
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value) but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise.
-Using Solver,determine the total cash used for the optimal solution.

• A)$120,000
• B)$300,000
• C)$130,000
• D)$600,000

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Definitions:

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A financial metric used to evaluate the potential return of an investment relative to its risk.

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