Business Finance Homework Help

Here’s the question:

Fast is allocating next year’s budget among its divisions. The R&D (Research and Development) division must
determine which research projects, named creatively 1 through 7, to fund. Each project requires various
software, hardware, and outside consulting expenses which are termed “Additional Costs.” Each project also
requires certain Fast engineers.
Fast R&D has been given a budget allocation of $1.2 million to cover Additional Costs and has 35 Fast staff
engineers available for the potential projects.
R&D has developed the following table of projected costs and staffing for the seven potential projects as well as
a prediction of the dollar return to Fast if the project succeeds. “Return” implies all costs have been deducted.