Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this problem. Which of the three investments would be undertaken if NPV is maximized? [ Select ] Maximize 9000 X1+ 7000 X2 + 8000X3 Minimize 32000 X2 + 29000X3 V Minimize 25000 X1 + 32000 X2 + 29000X3 The Objective functior Maximize 9000 X1 + 7000 X2
Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this problem. Which of the three investments would be undertaken if NPV is maximized? [ Select ] Maximize 9000 X1+ 7000 X2 + 8000X3 Minimize 32000 X2 + 29000X3 V Minimize 25000 X1 + 32000 X2 + 29000X3 The Objective functior Maximize 9000 X1 + 7000 X2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Develop an integer programming model to maximize the NPV in this situation. Use
excel to solve this problem. Which of the three investments would be undertaken if
[ Select ]
Maximize 9000 X1 + 7000 X2 + 8000X3
Minimize 32000 X2 + 29000X3
NPV is maximized?
V Minimize 25000 X1 + 32000 X2 + 29000X3
Maximize 9000 X1 + 7000 X2
The Objective function
The Optimal solution:
X1= [Select]
X2= [ Select ]
X3= [ Select ]
Profit= $ [ Select ]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba0907a9-6c52-4bb2-92a1-adea0cb5c93c%2F5d542305-85cd-4c47-a35d-481e79cf2870%2F8ikgc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Develop an integer programming model to maximize the NPV in this situation. Use
excel to solve this problem. Which of the three investments would be undertaken if
[ Select ]
Maximize 9000 X1 + 7000 X2 + 8000X3
Minimize 32000 X2 + 29000X3
NPV is maximized?
V Minimize 25000 X1 + 32000 X2 + 29000X3
Maximize 9000 X1 + 7000 X2
The Objective function
The Optimal solution:
X1= [Select]
X2= [ Select ]
X3= [ Select ]
Profit= $ [ Select ]
Transcribed Image Text:A company is considering three alternative investments from which to choose. It
will cost $25,000 to consider investment 1, and $32,000 to consider investment 2,
and $29,000 to consider investment 3. The company can only choose 2 out of the 3
investments and it has a budget of $62,000 to spend on these investments. The
company has a limitation of 36 resources for these investments, where investment 1
requires 16 resources, investment 2 requires 14 resources and investment 3 requires
19. The NVP on investment 1 is $9000, $7000 for investment 2, and $8000 for
investment 3.
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