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a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet.

a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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as well as the amount of investment required to undertake the project. Estimated profit (millions) Capital required (millions) 1 E* Development Project 3 4 2 $1 $1.8 $ 1.6 6 12 10 $0.8 4 5 $1.4 8 The owners of the firm, Dave Peterson and Ron Johnson, have raised $20 million of investment capital for these projects. Dave and Ron now want to select the combination of projects that will maximize their total estimated long-run profit (net present value) without investing more than $20 million. a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet.
Transcribed Image Text:as well as the amount of investment required to undertake the project. Estimated profit (millions) Capital required (millions) 1 E* Development Project 3 4 2 $1 $1.8 $ 1.6 6 12 10 $0.8 4 5 $1.4 8 The owners of the firm, Dave Peterson and Ron Johnson, have raised $20 million of investment capital for these projects. Dave and Ron now want to select the combination of projects that will maximize their total estimated long-run profit (net present value) without investing more than $20 million. a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet.
7.5. A real-estate development firm, Peterson and Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long- run profit (net present value) that each project would generate,
Transcribed Image Text:7.5. A real-estate development firm, Peterson and Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long- run profit (net present value) that each project would generate,
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