Use the Table Below to Answer the Following Questions) by Invoking

question 18

Multiple Choice

Use the table below to answer the following questions) by invoking the binary constraints on the variables using the standard Solver.
Below is the spreadsheet for a project selection model: $\begin{array}{|l|l|l|l|l|l|l|l|}\hline & \text { A } & \mathrm{B} & \mathrm{C}&D&E&F&G \\\hline 1 & \begin{array}{l}\text { Project Selection } \\\text { Model }\end{array} & & \\\hline 2 & & & \\\hline 3 & \text { Data } & & \\\hline 4 & & & & && & \text { Available } \\& &\text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } & \text { Project 5 } & \text { Resources } \\\hline &\text { Expected Return } & \$ 160,000 & \$ 200,000 & \$ 125,000 & \$ 150,000 & \$ 225,000 & \\5 &\text { NPV) } & \\\hline 6& \begin{array}{l}\text { Cash } \\\text { requirements }\end{array} & \$ 45,000 & \$ 70,000 & \$ 28,000 & \$ 52,000 & \$ 65,000 & \$ 175,000 \\\hline 7 & \text { Personnel } & & & & & & \\&\text { requirements } & 7 & 4 & 2 & 6 & 4 & 10\\\hline 8 & \\\hline 9 & \text { Model } \\\hline 10 & \\\hline & \text { Project selection } \\11 & \text { decisions } \\\hline 12 & \text { Cash Used } \\\hline 13 & \text { Personnel Used } \\\hline 14 & \text { Return } \\\hline\end{array}$
-What is the total amount of personnel used for all five projects?

• A) 23
• B) 17
• C) 10
• D) 4

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Definitions:

Growth Opportunities

Potential scenarios or investments that could lead to an increase in business scale, revenue, or profits.

No-growth Value

The value of a company assuming that it will not experience any future growth in earnings or dividends.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

Leeway

The amount of freedom to move or act that is available; in finance, it often refers to the flexibility allowed in making investment decisions or adjustments.