Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. If project 4 is chosen then project 2 cannot be selected. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value 1 $200,000 $430,000 2 $255,000 $460,000 3 $280,000 $730,000 4 $210,000 $800,000 5 $220,000 $620,000 Which projects should be selected?

Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. If project 4 is chosen then project 2 cannot be selected. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value 1 $200,000 $430,000 2 $255,000 $460,000 3 $280,000 $730,000 4 $210,000 $800,000 5 $220,000 $620,000 Which projects should be selected?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 68P

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