A B C D E F G H I J K L

1 Think-Big Development Co. Capital Budgeting Problem

2
3 Office Shopping
4 Building Hotel Center Range Name Cells
5 Net Present Value 45 70 50 CapitalAvailable H9:H12
6 ($millions) Cumulative Cumulative CapitalRequired C9:E12
7 Capital Capital CapitalSpent F9:F12
8 Cumulative Capital Required ($millions) Spent Available ParticipationShar C16:E16
9 Now 40 80 90 25 <= 25 NetPresentValue C5:E5
10 End of Year 1 100 160 140 44.757 <= 45 TotalNPV H16
11 End of Year 2 190 240 160 60.583 <= 65
12 End of Year 3 200 310 220 80 <= 80
13
14 Office Shopping Total NPV
15 Building Hotel Center ($millions)
16 Participation Share 0.00% 16.50% 13.11% 18.11
Transshipment Problem Give
Outflow Inflow To From
Flow From To Cost Capacity Nodes Inflow Outflow In - Out
1 3 8 100 1 0 0 0 =
1 4 13 100 2 0 0 0 =
1 5 25 100 3 0 0 =
1 6 28 100 4 0 0 =
2 3 15 100 5 0 0 =
2 4 12 100 6 0 0 =
2 5 26 100
2 6 25 100 Total Cost 0
3 4 6 100
3 5 16 100 Supply is negative and demand is positive -----> Use Inf
3 6 17 100 Demand is negative and Supply is positive ------> Use O
4 3 6 100
4 5 14 100
4 6 16 100
 Supply/ Demand
-160
-200
0
0
180
180

and is positive -----> Use Inflow - Outflow

pply is positive ------> Use Outflow - Inflow
From To Ship Capacity Unit Cost Nodes Net Flow Supply/Demand
P1 WH1 125 <= 125 425 P1 200 = 200
P1 WH2 75 <= 150 560 P2 300 = 300
P2 WH1 125 <= 175 510 WH1 0 = 0
P2 WH2 175 <= 200 600 WH2 0 = 0
WH1 RO1 100 <= 100 470 RO1 -150 = -150
WH1 RO2 50 <= 150 505 RO2 -200 = -200
WH1 RO3 100 <= 100 490 RO3 -150 = -150
WH2 RO1 50 <= 125 390
WH2 RO2 150 <= 150 410
WH2 RO3 50 <= 75 440

Total Cost 488125

Supply is negative and demand is positive -----> Use Inflow -

Demand is negative and Supply is positive ------> Use Outflo

Receive Give
To From
Inflow Outflow
 Supply/Demand Nodes Inflow Outflow Net Flow Supply/Demand
P1 0 200 200 = 200
P2 0 300 300 = 300
WH1 250 250 0= 0
WH2 250 250 0= 0
RO1 150 0 -150 = -150
RO2 200 0 -200 = -200
RO3 150 0 -150 = -150

is positive -----> Use Inflow - Outflow

is positive ------> Use Outflow - Inflow