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Define the simplified selection problem
Each fictional proposal has a positive initial cost and an entered NPV on a compatible basis. A proposal is selected whole or not selected. NPVs are assumed additive and no project depends on another. These assumptions define the small combination calculator.
Compare combinations rather than isolated ranks
A project with a high NPV-to-cost ratio can leave an unusable budget remainder. Two lower-ratio proposals may fit together and produce greater total NPV. This is why a descending ratio list alone does not solve every indivisible allocation.
Inspect a bounded exact search
With twelve proposals there are 2^12 = 4,096 subsets including the empty set. The tool evaluates that bounded list and retains feasible combinations under the initial budget. It does not forecast NPVs from raw revenue assumptions.
| Input | Output |
|---|---|
| Project costs and NPVs | Best entered NPV within the stated model |
| One initial budget | Cost and remaining initial budget |
| Independent whole projects | One maximizing combination |
Use another model when constraints differ
Dependencies, mutually exclusive groups, multi-period funding limits and divisible investments change the feasible set. Do not apply the simple independent model without documenting those differences. The worked counterexample below concerns only its explicit assumptions.