Set up the linear programming problem, assuming that fractions and multiples of projects cannot be taken.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Ee 437.

A closely held, publicly traded firm faces self-imposed capital rationing constraints of
$100 million in this period and $75 million in the next period. It has to choose among the following projects (in millions):
Investment Outlay
Project
A
B
с
D
E
F
G
H
J
$15
$40
$10
$20
$20
$30
$35
$25
Current Period
$25
$30
$15
$25
$10
$15
$25
$25
$15
$20
$30
$10
$20
$35
$25
$10
Next
Period
$10
$15
$30
NPV
$20
$20
$15
Set up the linear programming problem, assuming that fractions and multiples of projects cannot be taken.
Transcribed Image Text:A closely held, publicly traded firm faces self-imposed capital rationing constraints of $100 million in this period and $75 million in the next period. It has to choose among the following projects (in millions): Investment Outlay Project A B с D E F G H J $15 $40 $10 $20 $20 $30 $35 $25 Current Period $25 $30 $15 $25 $10 $15 $25 $25 $15 $20 $30 $10 $20 $35 $25 $10 Next Period $10 $15 $30 NPV $20 $20 $15 Set up the linear programming problem, assuming that fractions and multiples of projects cannot be taken.
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