End of Proposal year A B 0123 C D -$100,000-$20,000-$120,000-$30,000 40,000 6,000 25,000 6,000 40,000 10,000 50,000 10,000 60,000 10,000 85,000 19,000
End of Proposal year A B 0123 C D -$100,000-$20,000-$120,000-$30,000 40,000 6,000 25,000 6,000 40,000 10,000 50,000 10,000 60,000 10,000 85,000 19,000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section9.5: Multistage Decision Problems
Problem 19P
Related questions
Question
Four proposals are under consideration by your company. Proposals A and C are mutually exclusive; proposals B and D are mutually exclusive and cannot be implemented unless proposal A or C has been selected. No more than $140,000 can be spent at time zero. The before-tax MARR is 15% per year. The estimated cash flows are shown in the accompanying table. Form all mutually exclusive combinations in view of the specified contingencies, and formulate this problem as a linear integer programming model.
Transcribed Image Text:End
of
Proposal
year
A
B
0123
C
D
-$100,000-$20,000-$120,000-$30,000
40,000
6,000
25,000
6,000
40,000 10,000
50,000 10,000
60,000 10,000
85,000
19,000
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