126

applied.
Therefca convenient MBA Third sem
assignril';;":;' med of choosr
ranking." rr,"..u#Tiro oi"r*.T:l"o

*,1 i'..[ffi'.,ffi;$$Iffirufi

ffi
M#,',-,"-#itrilffi"#i,,
'vPB,mmtrEI
6,00,000 40,000-
1,00,000
4,00,000

Required
hoJect Initial oor"d.ll'3i,,.,
Ouflav I
(?) C'apihl I Profilbtrity Index

IA
I
z,w,(n0
--- +?=----j
t@y1211

/s
lc 6,00,000 rv't^rl, I -_____d---"-_r
r,00,000 70,w I 0.2

E
D 4,00,000 32,w 1 o.n7
0.32
2fn Nv, 50,000 -
0.12s
..- 0.3
I
 126

rhird Sem

"l.:lTi #i':fi::
convenienr
*"J""
ana prepare;',Tloo of choos;
ranking. *".u#T

ffiffiffirffi
Singre period
..^n
p.o:t"i' *"0'ai;#XfrH"rffi:;

#l:f , ru'
':rruSUOD f: ffi
p1.oio,
iffi
I ;Ilft lt,;ffiu'
and constrain,
n'
;;"9' 1fi ]::"",ffi-"1frv rulVe
i) pt ir""^1ii.1.1 a problem,

?:'*'f""."11xffi ,

url $'i,,T##:
,:1 uptimal combinar
:;i1.", H:.;

ffiHfi-I;ffiffi*-"J"1;
BreE ;Lftl,1,ffi :ffi::ffil,
#ii'$,
apdh
)
":?i,
NPv#F;Bm.n
A
B
C 6,00,000 40,000-
1,00,000 '70,0w
D

w
E 4,00,000 32,0w

. tWValiE.--..-
Approprlate
Cost of

40,0w
70,w 0.2
32,0m 0.117
50,000 o.32
0.12s
't

t27
BY (Untt
Sr-aregy (Unit 3)
R.equircd Initiel
h@ent Project (()
I c I,00,000
E 2,m,m0
3 A 2,00,000
1,00,000*
4 1/4ft ofD Galancing figure)
trl 6,00,(no

Eom xu4) = 1,oo,ooo

grbe optimal combination of projects is C, E, A and 1/4e
tD.
rII: Projects are Indivisible and Constraint in Single
bllorlinj steps need to be taken to solve a problem' when
Etion is faced:
i possible combinations of those proiects, whose total of
tortlay is within the funds available for investment' should
o*n in a table; and
combination of those projects, whose aggregate NPV is
r, are selected. They are the optimal project mix'
: Determine the optimal project mix using the data
l0:
in example 50, assuming that the projects are indivisible'

A,C 72,W
A,D 90,m0
A,E 1.m,om
c,D 82,Un
c,E 92,000
D,E '1,10,000
A,C,I

riod Capital'Constraints: A single perid constraint is

&eoreiical one and to some extent may be considered
^
ic. The possibility of fixing a budget in such a constant
that it leaves no room for any flexibility' is a rare one'
the costs of certain investment projects are likely to be
ver a period of time, which may run into many years' Under
6-r".i.a analysis, it is possible to- extend the capital
lt problem to consider budget constraints in several future
iods.
rojects happen to be divisible, then the problem maY h-
.ri Uv oting linear programming' However, in the case of