An entrepreneur with $8 million to invest is considering acquisition of four companies. She estimates the cost of acquiring the four at $5, $1, $2, and $7 million, respectively, and the present value of owning them at $8, $3, $4, and $10. Investments are on an "all or nothing" basis (i.e., she must buy entire companies). Model as a dynamic program the problem of deciding which investments she should choose. a) Formulate the entreprenur's problem as an Integer Knapsack model. b) Define the states and stages of the corresponding discrete dynamic program to compute an optimum. c) Draw the digraph corresponding to your model of (b). d) Solve the model of (a) by identifying an optimal path in the figure of (c).

An entrepreneur with $8 million to invest is considering acquisition of four companies. She estimates the cost of acquiring the four at $5, $1, $2, and $7 million, respectively, and the present value of owning them at $8, $3, $4, and $10. Investments are on an "all or nothing" basis (i.e., she must buy entire companies). Model as a dynamic program the problem of deciding which investments she should choose. a) Formulate the entreprenur's problem as an Integer Knapsack model. b) Define the states and stages of the corresponding discrete dynamic program to compute an optimum. c) Draw the digraph corresponding to your model of (b). d) Solve the model of (a) by identifying an optimal path in the figure of (c).

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter6: Systems Of Equations And Inequalities

Section: Chapter Questions

Problem 21T: A manufacturer produces two models of television stands. The table at the left shows the times (in...

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