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1.

Recommended Percentage of each project

61% and 87% for Security Systems and Market Analysis respectively.

$ 2486956.52 is theNPV of total investment

2.

Capital Allocation plan is shown in figure below. (Blue Shade)

Total Recommended Investment is shown in Orange Shade for respective years.

Decision Variables 0.61 0.87 0.00
NPV (at 100
percent) 18,00,000.00 16,00,000.00
NPV 24,86,956.52

Constraints Coefficients lhs rhs diff
8,00,000.0
Year 1 6,00,000.00 5,00,000.00 8,00,000.00 0 0.00
7,00,000.0
Year 2 6,00,000.00 3,50,000.00 6,69,565.22 0 30,434.78
5,00,000.0
Year 3 2,50,000.00 4,00,000.00 5,00,000.00 0 0.00

Security Market Total
Systems Analysis Investment
Year 1 3,65,217.39 4,34,782.61 8,00,000.00
Year 2 3,65,217.39 3,04,347.83 6,69,565.22
Year 3 1,52,173.91 3,47,826.09 5,00,000.00
Capital Allocation plan

00 Security Market Total Systems Analysis Investment Year 1 4.88. $ 25.0 Year 2 6.00 16.22.11.18 from $30434.1 Year 1 6.000.72.00.78 totalling $47000 which when reinvested again will result in greater avenues for profit.00 8.00 5.22.67is theNPV of total investment 4.50.00 0 0.00 Year 3 1.50. Recommended Percentage of each project 69% and 82% for Security Systems and Market Analysis respectively.00.13.24 4.00.000.819.80 8.76 7.3.0 77. Yes.114.0 Year 3 2.00 3. .24 2.50.12 Capital Allocation plan 5.82 0. Decision Variables 0.00.00.44 5.000.00 5.00.000.00 7.00.00.95.00 4.000.606.000.000.000.82 0 8 7.04 Year 2 4.00.00.000.13.000. Capital Allocation plan is shown in figure below.000.11.082.00 0 0.68 3.475. This represents a very profitable arrangement.00.00.50.00. As can be seen $63863 is the increment in NPV where as the slack value increases to $77049.00.00 NPV 25. They should invest additional funds.524.00 5.000.000.819.950.27.86. Thus the total return from additional $100000 will be $110000 and interest on $47000.67 Constraints Coefficients lhs rhs diff 9.000.09.049.475.86.83.13.000.00.69 0.885.00 NPV (at 100 percent) 18. (Blue Shade) Total Recommended Investment is shown in Orange Shade for respective years.