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:

Landfills

Sites for the disposal of waste materials by burial, the oldest and most common form of waste treatment.

Power Plants

Facilities where various forms of energy (nuclear, fossil, renewable) are converted into electricity.

Landfill

A designated area for the disposal of waste materials by burial.

Garbage

Waste material, especially discarded food items, that is considered worthless or of no value.