Net Present Capital Requirements in million pesos

Alternatives Value, in
Year 1 Year 2 Year 3
million Pesos
Limited
Warehouse 4.0 3.0 1.0 4.0
Expansion
Extensive
Warehouse 6.0 3.5 4.0 3.5
Expansion
Test Market
10.5 5.0 3.0 3.5
New Product
Advertising
4.0 2.0 1.5 1.8
Campaign
Basic Research 7.0 5.0 1.0 3.0
Purchase New
3.0 1.0 0.5 0.9
Equipment
Capital Funds Available 10.5 7.0 6.5

Investment Annual Rate of Return (%) Risk

Stocks 10 0.8
Bonds 3 0.2
Mutual Funds 4 0.3
Money Market Funds 1 0

*Test Market New Product and Basic Research should be carried out

*Extensive Warehouse Expansion and Basic Research should be carried out.

*Extensive Warehouse Expansion and Basic Research should be carried out.

The alloted investment in MMF should be decreased since its annual rate of return is very small.
Investing in MMF will only result in a small income.

I tried increasing the MMF to 20% and the annual return became 7.9% only but when I
decreased the MMF to 5%, the maximum annual return became 8.4%.