Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.A firm has prepared the followig binary integer program to evaluate a number of potential new capital projects. The firm's goal is tomaximize the net present value of their decision while not spending more than their currently available capital.Max 100x1 + 120x2 + 90x3 + 135x4) s.t 150x1 + 200x2 + 225x3 + 175x4 500 (Constraint 1)X1 + x2 + x3 + x4 2 2{Constraint 2)x2 + x4 < 1 {Constraint 3}x2 + x3 2 1 {Constraint 4)x1 = x4{Constraint 5}S 1, if project j is selected0, otherwiseIj =Set up the problem in Excel and find the optimal solution. Which projects are selected?

Objective Functions and Constraints: Based on the given details, the objective…

Answered: Note: This problem requires the use of…

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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Problem 2: Applications of Linear Programming: Visa Inc. Stock sells for $92 a share and has 3-year average annual return of $20 a share. The beta value is 1.06. JP Morgan Chase and Co. sells for $87 a share and has a 3-year average annual return of $17 a share. The beta value is 1.21. Derek wants to spend no more than $15,000 investing in these two stocks, but he wants to earn at least $2500 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy.
For your next 10k race of the athletics season, you consider competing in either Sheffield, Cardiff, or Birmingham. After considering results from past years and the three different routes, you estimate your prize money, which will also depend on your form on the day. These estimated prizes are shown in the following table: Good form Average form Bad form 0 Sheffield 1000 Cardiff 700 Birmingham 800 400 500 600 200 100 Which condition must a satisfy such that Birmingham is the optimal city to go compete, according to the optimism-pessimism rule?
Assume that $1,285,673 is to be invested in a project whose annual projected cash flows are as follows: Year 1 = $235,678, Year 2 = $267,854, Year 3 = $298,054, Year 4 = $314,567, and Year 5 = $325,678. Assume that the required rate of return is 5.25%. Compute the NPV by using Microsoft Excel's NPV function. Be sure to show your work. Should the project be pursued? Why or why not?
The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It purchases the trees for $10 each and sells them for $20 each. Any trees not sold by Christmas day are sold for $2 each to a company that makes wood chips. The garden center estimates that four levels of demand are possible: 100, 200, 500, and 1,000 trees.a. Compute the payoffs for purchasing 100, 200, 500, or1,000 trees for each of the four levels of demand.b. Construct a payoff table, indicating the events and alternative courses of action.c. Construct a decision tree.d. Construct an opportunity loss table. Use the Optimistic (maximax) to choose the best choice.e.Use the Pessimistic (maximin) to choose the best choice.f.Use the Criterion of realism (Hurwicz) to choose the best choice. α = 0.6g.Use the Equally likely (Laplace) to choose the best choice.h.Use the Minimax regret to choose the best choice.i.Use the expected monetary value to make a choice. ( Probability for the four level…
Sociology
Friendly Waste Co. runs three different factories and is required by law to safely dispose of chemicals. Waste from three different factories can be processed to reduce the amount of two different types of pollutants. State law requires that the total reduction in the amount of pollutant A is at least 30 tons and pollutant B is at least 40 tons. Using the information in the following table: Factory Proc Cost Per Ton Reduction Plant A Reduction Plant B 1 15 0.1 0.45 2 10 0.2 0.25 3 20 0.4 0.3 •Algebraically formulate a linear programming model to represent this problem.
Donald Harris received a windfall and needs to invest it for tax reasons. He went to his brother-in-law, Joe Harris, who is a financial advisor. Joe prepared a matrix that illustrated the possible returns on investment for different investment strategies under different economic conditions. That matrix is given below. Given these values, what type of investment strategy would be selected by the Maximincriterion? Future Air Traffic Strategies Major Downturn Downturn Upturn Major Upturn Contrarian 20% 10% 5% -15% Risk Averse 2% 4% 7% 10% Growth -10% -8% 13% 20% Aggressive -25% -20% 11% 35% Group of answer choices
KrazySockzThe KrazySockz Company is known for their colorful yetcomfortable socks. They have forecasted their demand for the nextsix months as follows: Month 1 demand is 30,000, month 2demand is 50,000, month 3 demand is 20,000, month 4 demand is10,000, month 5 demand is 15,000 and month 6 demand is 20,000.At the beginning of month 1 they have 15,000 pairs of socks onhand. KrazySockz currently has 40 production employees. Each productionemployee costs the company the company $4,000 per month ($3,200 salary and $800in other costs) per month. Production employees can work up to 160 hours permonth before they must be paid overtime. Overtime is paid at a rate of $30 per hourand production employees can not work more than 30 hours per month overtime. Ittakes 15 minutes of labor and $0.75 of raw material to produce a pair of socks.KrazySockz can hire or fire employees each month. Hiring a production employeeincurs a cost of $3,500 and firing a production employee costs $4,500. At the end…
Using Goal Seek for the following problem, how much is needed for John to deposit each year into an account to save $5,000 for his new Specialized Mountain bike. Assumes both deposit and withdrawal are at beg of each year Deposit = Interest= Yr 0 Yr 1 Yr 2 Beg Balance $0.00 $0.00 $0.00 Deposit $0.00 $0.00 -$5,000.00 Interest Earned 8% $0.00 $0.00 na End Balance $0.00 $0.00 -$5,000.00
Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $10,000, while labor, material, packaging, and shipping will be about $8 per doll. He has determined that monthly sales volume is related to price, according to the following equation: v=5000-90p. Develop the nonlinear profit function as a function of price.

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