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. Projects 2 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 SAWNH 2 3 5 Project 1 will Project 2 will Cost $ 250,000 $ 500,000 $ 290,000 $ 650,000 $ 750,000 Which projects should be selected? Project 3 will Project 4 will Project 5 will be selected be selected Net Present Value $ 500,000 $750,000 $ 333,000 $ 400,000 $ 600,000 be selected be selected not be selected

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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. Projects 2 and 4 cannot
both be selected together. Formulate the problem as a linear program and
determine the optimal solution.
Project
1234 in
2
5
Project 1 will
Project 2 will
Cost
$ 250,000
$ 500,000
$ 290,000
$ 650,000
$ 750,000
Which projects should be selected?
Project 3 will
Project 4 will
Project 5 will
be selected
be selected
Net Present Value
$ 500,000
$ 750,000
$ 333,000
$ 400,000
$ 600,000
be selected
be selected
not be selected
F
Transcribed Image Text:15 eBook References 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. Projects 2 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1234 in 2 5 Project 1 will Project 2 will Cost $ 250,000 $ 500,000 $ 290,000 $ 650,000 $ 750,000 Which projects should be selected? Project 3 will Project 4 will Project 5 will be selected be selected Net Present Value $ 500,000 $ 750,000 $ 333,000 $ 400,000 $ 600,000 be selected be selected not be selected F
What is the total net present value of these projects?
Total net present value
Transcribed Image Text:What is the total net present value of these projects? Total net present value
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