Formulate (do NOT solve) a present-value-maximization linear programming model for selecting among the three projects described below. MARR=10%. There is a budget of $15,000 at time 0, and the projects are required to generate $3,000 at time 1 and $1,200 at time 2. The life of each project is 8 years. The projects are independent, except that B cannot be selected unless A is also selected. Project Investment Annual Cash Flow A $8,000 $1,900 B 5,000 1,400 C 9,000 2,300
Formulate (do NOT solve) a present-value-maximization linear programming model for selecting among the three projects described below. MARR=10%. There is a budget of $15,000 at time 0, and the projects are required to generate $3,000 at time 1 and $1,200 at time 2. The life of each project is 8 years. The projects are independent, except that B cannot be selected unless A is also selected.
Project Investment Annual Cash Flow
A $8,000 $1,900
B 5,000 1,400
C 9,000 2,300
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