(b) Solve the model formulated in part (a). What is the optimal net present value (in millions of dollars)?millionWhich projects will be undertaken? (Enter your answer as a comma separated list of numbers. Use 1 for project 1, 2for project 2, 3 for project 3, 4 for project 4, 5 for project 5, and 6 for project 6.)How much of the budget is unused (in millions of dollars)?million Brooks Development Corporation (BDC) faces the following capital budgeting decision. Six real estate projects are availablefor investment. The net present value and expenditures required for each project (in millions of dollars) are as follows.Project12 3 4 5 6Net Present Value ($ millions)$18$8 $16 $17 $23 $12Expenditure Required ($ millions) $92 $36 $83 $72 $116 $52There are conditions that limit the investment alternatives:The budget for this investment period is $220 million.(a) Formulate a binary integer program that will enable BDC to find the projects to invest in to maximize net present[1 if project iis undertaken forvalue, while satisfying all project restrictions and not exceeding the budget. (Let x, = { otherwise/= 1, 2, 3, 4, 5, 6. Give your objective function in millions of dollars.MaxAt least two of projects 1, 3, 5, and 6 must be undertaken.• If either project 3 or 5 is undertaken, they must both be undertaken.• Project 4 cannot be undertaken unless both projects 1 and 3 also are undertaken.s.t.constraint on projects 1, 3, 5, and 6constraint on projects 3 and 5constraint on projects 1 and 4constraint on projects 3 and 4budget constraint

Given, Brooks development corporation has the following capital budgeting decisions. Project 1 2…

Answered: (b) Solve the model formulated in part…

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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Shakeia Duncan wants to know what home price she can afford. Her annual gross income is $46,200. She owes $840 per month on other debts and expects her property taxes and homeowner's insurance to cost $160 per month. She knows she can get an 10.50 percent, 30-year mortgage so her mortgage payment factor is 9.15. She expects to make a 15 percent down payment. What is Shakeia's affordable home purchase price?
3:40 PM | 0.9KB/s ↑ January 1, 2024 15:37 VPN Yl (72) 4G+ G A mortgage of $119,000 is to be repaid by making payments of $945 at the end of each month. If interest is 5.78% per annum compounded annually, what is the term of the mortgage? State your answer in years and months (from 0 to 11 months). The term of the mortgage is year(s) and month(s). O U
It is summertime and your winter coat factory is trying to decide its production schedule and staffing level for the next season. You are forecasting a demand of 5000 coats in October, 8000 coats in November, 8000 coats in December, 12000 coats in January, 12000 coats in February, and 9000 coats in March. You want to manufacture these coats at the lowest cost possible/ The first decision you need to make is how many people to hire. Each employee will cost $2500 a month. You don’t want to hire or fire any employees mid-season in order to minimize disruptions in your factory floor. You can have employees idle if there isn’t sufficient work for them to do. Employees still need to be paid even if they are idle. An employee works 20 business days a month and takes half a day to produce one coat. The employees can also be asked to work overtime, in which case you need to pay them $70 per coat they produce. You don’t need to assume there is any capacity constraint on the number of overtime…
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Kualoa Corporation is trying to assess the risk of two possible capital budgeting proposals. The company has developed pessimistic, most likely, and optimistic estimates of the annual cash inflows. They are given in the following table. The firm's cost of capital is 10 percent. What is the range of the annual cash inflows for Project A?
Answer the following questions. Make sure to number your answers when you upload your response. Suppose Alphonso’s town raised the price of bus tickets to $2.50 per trip (while the price of burgers stayed at $3.50 and his budget remained $11.50 per week.) Draw Alphonso’s new budget constraint. What happens to the opportunity cost of bus tickets? Suppose Alphonso’s town raises the price of bus tickets from $2.50 to $5 and the price of burgers rises from $3.50 to $7. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from $11.50 to $23. How is his budget constraint affected from all three changes? Explain. Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week? If the price of a pie is $12, what is the maximum number of pies she could buy in a…
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