Alternative A в с B Initial investment ($106) 4.0 Personnel requirement (hours) 4.5 1.0 7,000 9,000 3,000 Alternative A В After-tax annual 1.3 2.2 0.9 savings, years one through four ($106) PW at 10% per year ($10°) 0.12 2.47 1.85

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Three alternatives are being considered for an engineering project. Their cash-flow estimates are shown in the accompanying table. A and B are mutually exclusive, and C is an optional add-on feature to alternative A. Investment funds are limited to $5,000,000. Another constraint on this project is the engineering personnel needed to design and implement the solution. No more than 10,000 person-hours of engineering time can be committed to the project. Set up a linear integer programming formulation of this resource allocation problem.

Alternative
A
в с
B
Initial investment ($106) 4.0
Personnel requirement
(hours)
4.5
1.0
7,000 9,000 3,000
Alternative
A
В
After-tax annual
1.3
2.2
0.9
savings, years one
through four ($106)
PW at 10% per year
($10°)
0.12 2.47
1.85
Transcribed Image Text:Alternative A в с B Initial investment ($106) 4.0 Personnel requirement (hours) 4.5 1.0 7,000 9,000 3,000 Alternative A В After-tax annual 1.3 2.2 0.9 savings, years one through four ($106) PW at 10% per year ($10°) 0.12 2.47 1.85
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