What is the total net present value of these projects?Total net present value Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listedbelow. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2projects. Projects 5 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimalsolution.ProjectCostNet Present Value$295,000$285,000$300,000$250,000$240,000$680,000$610,000$470,000$630,000$650,000134Which projects should be selected?Project 1 willProject 2 willProject 3 willProject 4 willProject 5 willbe selectednot be selected

Let xi be the binary number whether the project i is selected if 1, 0 if not The NPV must be…

Answered: Your employer is trying to select from…

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...

See similar textbooks

Similar questions

BP Cola must decide how much money to allocate for new soda and traditional soda advertising over the coming year. The advertising budget is $10,000,000. Because BP wants to push its new sodas, at least one-half of the advertising budget is to be devoted to new soda advertising. However, at least $2,000,000 is to be spent on its traditional sodas. BP estimates that each dollar spent on traditional sodas will translate into 100 cans sold, whereas, because of the harder sell needed for new products, each dollar spent on new sodas will translate into 50 cans sold. To attract new customers, BP has lowered its profit margin on new sodas to 2 cents per can as compared to 4 cents per can for traditional sodas. Let X 1 = amount invested in new soda advertising ; and X 2 = amount invested in traditional soda advertising. The objective function that would maximize profit is:
Diamond City Amusement Park management is preparing the park's annual promotional plan for the coming season. Several advertising alternatives exist: newspaper, television, radio, and displays at recreational shows. The information below shows the characteristics associated with each of the advertising alternatives, as well as the maximum number of placements available in each medium. Management also wants the total of television and radio placements not to exceed 80. Given an advertising budget of 2,500,000 pesos, how many placements should be made in each medium to maximize total audience exposure? Formulate this as a linear programming problem.
Marla Opper currently earns $53,000 a year and is offered a job in another city for $66,700. The city she would move to has 23 percent higher living expenses than her current city. What minimum salary should Marla require before accepting the new position? Should Marla accept the new job?
Finance Problem 8-9 Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. The monthly forecasts for Product X for January, February, and March are 930, 1,550, and 1,220, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 550 units. Manufacturing cost is $190 per unit, storage cost is $6 per unit per month, standard pay rate is $4 per hour, overtime rate is $6 per hour, cost of stockout is $9 per unit per month, hiring and training cost is $280 per worker, layoff cost is $380 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 47 workers and that they work 8 hours per day. (Round Workers Required up to the next higher whole number. Round all other variables off to the nearest whole number. Use…
A car rental firm needs to relocate cars for the coming month. Three of the cities are projected to have a surplus of cars, and three are expected to have a shortage. The following table shows the cost (in hundred shillings) of relocating a car from a surplus city to a shortage city. Als shown are the projected shortages and surplus for the different cities. Surplus city F1 F2 F3 No. of cars short a. 21950 O b. 152000 19500 C. D1 8 4 7 90 d. 219500 Shortage city D2 6 9 6 65 Use the North-West corner method to determine the initia basic feasible solution in shillings. D3 10 8 5 145 Surplus car 105 120 75
Chiyeyeye Enterprises Ltd sells equestrian boots and has three brands: Riding boots, work boots and casual wear. Looking ahead to the financial year ending 31st may, 2022, the directors of Chiyeyeye Enterprises ltd are faced with a budget loss of ZMW 10 000. This is based on the following data: Budgeted number of boots 10 000 Sales price per unit ZMW10 Variable cost per unit ZMW 6 Fixed cost ZMW 6000 Calculate the breakeven point for Chiyeyeye Enterprise ltd The number of boots to be sold to make a profit of ZMW 20 000 3. What happens to the profit if the overheads increase to ZMW 8000?
Formulate a chase sales and operations plan for a company with the following predicted demand: Month 1 2 3 4 5 6 Total Demand 55,200 49,600 12,800 24,800 50,400 25,600 218,400 The beginning workforce is 160 employees. The monthly output per employee is 400 units. The cost to hire and lay off a worker are $2,500 and $3,500, respectively. The cost to carry an item in inventory for one month is estimated at $14, and the stockout cost is $25 per unit. Show the production schedule, the inventory levels, and the changes in the workforce…
In terms of dynamic programming, define the optimality principle.
It is summertime and your winter coat factory is trying to decide its production schedule and staffing level for the next season. You are forecasting a demand of 5000 coats in October, 8000 coats in November, 8000 coats in December, 12000 coats in January, 12000 coats in February, and 9000 coats in March. You want to manufacture these coats at the lowest cost possible/ The first decision you need to make is how many people to hire. Each employee will cost $2500 a month. You don’t want to hire or fire any employees mid-season in order to minimize disruptions in your factory floor. You can have employees idle if there isn’t sufficient work for them to do. Employees still need to be paid even if they are idle. An employee works 20 business days a month and takes half a day to produce one coat. The employees can also be asked to work overtime, in which case you need to pay them $70 per coat they produce. You don’t need to assume there is any capacity constraint on the number of overtime…
There are three types of Market coverage. Explain the type of market coverage applicable to Lorraine’s business.
The College of Business at Tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, coursedevelopment, and staff recruitment and development is $350,000. The college plans to charge tuition of $18,000 per student per year. However,the university administration will charge the college $12,000 per student for the first 100 students enrolled each year for administrative costs and itsshare of the tuition payments. If the college can enroll 75 students the first year, how much profit will it make?
Uncertainties and risks are always associated with large real world projects and may obstacle and threaten projects in some ways. Failure in accurately identifying the project risks increases the total cost and may cause social and environmental damages as well as casualties during project execution. The aim of this study is to develop a mathematical programming model for selecting risk response strategies for construction projects. All risk response strategies for the analysed project have been identified and a mathematical model is presented based on project iron triangle; time, cost and quality to obtain the optimal risk response strategy for the construction project.Uncertainties and risks are the inherent characteristics of the real world construction projects. The project risk management deals with identifying and controlling the risks before they occur. Various risks happen in project execution phase which may reduce the performance efficiency and even cause the project failure.…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS