S6 Integer Models

Mercer Development Capital Budgeting Project 1 Project 2 Project 3 Project 4 NPV ($million) 35 18 24 16 Cash Outflow Required ($million) Year 1 10 8 6 12 36 <= Year 2 8 5 4 0 17 <= Year 3 8 0 6 0 14 <= Yes/No? 0 0 0 0 Total Income (NPV) 0 A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13

Budget 30 15 12 I 1 2 3 4 5 6 7 8 9 10 11 12 13

Mercer Development Capital Budgeting Project 1 Project 2 Project 3 Project 4 NPV ($million) 35 18 24 16 Cash Outflow Required ($million) Total Outflow Available Year 1 10 8 6 12 36 Year 2 8 5 4 0 17 Year 3 8 0 6 0 14