Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. Projects 5 and 3 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value $255,000 $230, 000 $270,000 $250, 000 $260, 000 1 $760,000 $670,000 $690,000 3. 4 $620,000 $780,000 Which projects should be selected?
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. Projects 5 and 3 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value $255,000 $230, 000 $270,000 $250, 000 $260, 000 1 $760,000 $670,000 $690,000 3. 4 $620,000 $780,000 Which projects should be selected?
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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Question
![3.
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed
below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2
projects. Projects 5 and 3 cannot both be selected together. Formulate the problem as a linear program and determine the optimal
solution.
Project
Cost
Net Present Value
$255,000
$760,000
$670,000
$690,000
$620,000
$780,000
$230,000
$270, 000
$250, 000
$260,000
Which projects should be selected?
Project 1 will
Project 2 will
Project 3 will
Project 4 will
Project 5 will](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F404c7b16-66fd-4d20-87af-5177c2474d3b%2F1a839af7-bc12-43c5-b278-2b966387ab96%2Fbb6ysq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed
below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2
projects. Projects 5 and 3 cannot both be selected together. Formulate the problem as a linear program and determine the optimal
solution.
Project
Cost
Net Present Value
$255,000
$760,000
$670,000
$690,000
$620,000
$780,000
$230,000
$270, 000
$250, 000
$260,000
Which projects should be selected?
Project 1 will
Project 2 will
Project 3 will
Project 4 will
Project 5 will
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