Eastern Engineering Company Is Trying to Decide Which of 6

Essay

Eastern Engineering Company is trying to decide which of 6 projects to perform during the next quarter.The net present value, the estimated cost, and the number of engineers and staff personnel required for each project are given in the following table. $\begin{array}{ccccc}\text { Project } & \text { Net Present} & \text { Cost } & \text { Engineers } & \text { Staff }\\ &\text { Value } & \left(\$ 1000^{\prime} s\right) & \text { Required } & \text { Required }\\&(\$ 1000^{\prime} \mathrm{s})\\1 & 100 & 35 & 5 & 2 \\2 & 145 & 65 & 8 & 3 \\3 & 200 & 95 & 11 & 2 \\4 & 250 & 180 & 4 & 2 \\5 & 500 & 250 & 16 & 7 \\6 & 695 & 475 & 19 & 11\end{array}$
Eastern has a $550,000 budget and 30 engineers and 15 staff available.Which projects should Eastern perform during the quarter?