Chapter 30. Using Solver for Capital Budgeting
How can a company use Solver to determine which projects it should undertake?
Each year, a company like Eli Lilly needs to determine which drugs to develop; a company like Microsoft, which software programs to develop; a company like Proctor & Gamble, which new consumer products to develop. The Solver feature in Microsoft Office Excel 2007 can help a company make these decisions.
How can a company use Solver to determine which projects it should undertake?
Most corporations want to undertake projects that contribute the greatest net present value (NPV), subject to limited resources (usually capital and labor). Let’s say that a software development company is trying to determine which of 20 software projects ...
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