Eastern Engineering Company Is Trying to Decide Which of 6

question 25

Essay

Eastern Engineering Company is trying to decide which of 6 projects to perform during the next quarter.The net present value, the estimated cost, and the number of engineers and staff personnel required for each project are given in the following table. $\begin{array}{ccccc}\text { Project } & \text { Net Present} & \text { Cost } & \text { Engineers } & \text { Staff }\\ &\text { Value } & \left(\$ 1000^{\prime} s\right) & \text { Required } & \text { Required }\\&(\$ 1000^{\prime} \mathrm{s})\\1 & 100 & 35 & 5 & 2 \\2 & 145 & 65 & 8 & 3 \\3 & 200 & 95 & 11 & 2 \\4 & 250 & 180 & 4 & 2 \\5 & 500 & 250 & 16 & 7 \\6 & 695 & 475 & 19 & 11\end{array}$
Eastern has a $550,000 budget and 30 engineers and 15 staff available.Which projects should Eastern perform during the quarter?

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Definitions:

Solidifies

The process of becoming firm or hard, or changing from a liquid or gas to a solid state.

Path

The direction or route taken or to be taken by a moving geological process, element, or feature, such as a river or a fault line.

Volcanic Glass

A type of rock formed from the rapid cooling of lava without crystallization, producing a natural glass.

Coarse Granite

A type of granite rock characterized by large grains or crystals, indicative of slow cooling beneath the Earth's surface.