Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefit. below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to sele projects. Projects 4 and 2 cannot both be selected together. Formulate the problem as a linear program and determir solution. Project Cost Net Present Value 1 $200,000 $255,000 $280,000 $210,000 $430,000 $460,000 $730,000 2 4 $800,000 $620,000 $220,000 Which projects should be selected? Project 1 will Project 2 will Project 3 will
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefit. below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to sele projects. Projects 4 and 2 cannot both be selected together. Formulate the problem as a linear program and determir solution. Project Cost Net Present Value 1 $200,000 $255,000 $280,000 $210,000 $430,000 $460,000 $730,000 2 4 $800,000 $620,000 $220,000 Which projects should be selected? Project 1 will Project 2 will Project 3 will
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefit:
below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to sele
projects. Projects 4 and 2 cannot both be selected together. Formulate the problem as a linear program and determin
solution.
Project
Cost
Net Present Value
1
$200,000
$430,000
$460,000
2
$255,000
$280,000
$210,000
$730,000
$800,000
$620,000
4
$220,000
Which projects should be selected?
Project 1 will
Project 2 will
Project 3 will
Project 4 will
Project 5 will
What is the total net present value of these projects?
Total net present value
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