millions of dollars. Company owners Dave Peterson and Ron Johnson raised $20 million in investment capital for these projects. They want to choose the mix of projects that maximizes the total estimated long-term profit (net present value) without investing more than $20 million. a) Formulate a PEB model for this problem.
millions of dollars. Company owners Dave Peterson and Ron Johnson raised $20 million in investment capital for these projects. They want to choose the mix of projects that maximizes the total estimated long-term profit (net present value) without investing more than $20 million. a) Formulate a PEB model for this problem.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
A real estate company, Peterson & Johnson, discusses five potential development projects.
The following table shows the estimated long-term earnings (net present value) that each project would generate and the investment required to undertake it, in millions of dollars.
Company owners Dave Peterson and Ron Johnson raised $20 million in investment capital for these projects. They want to choose the mix of projects that maximizes
the total estimated long-term profit (net present value) without investing more than $20 million.
a) Formulate a PEB model for this problem.
Transcribed Image Text:Estimated
profit
Required
capital
1
1
6
Development
3
1.6
2
1.8
12
10
Project
4
0.8
4
5
1.4
00
8
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