The way to maximize the total billings during the next month. Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.

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During the first year software will be purchased from a reputable vendor for $3,000,000. An internal team aided by a hired consulting is also used. The payroll for the internal team is $500,000 for the first year and increases by $500,000 in years two and three. Also, $500,000 will be spent on consulting during the first year and $1,000,000 during each of years two and three. $2,000,000 will need to be invested in hardware during the second year and an additional $500,000 investment in hardware will be needed for year three. $200,000 in training will be needed the first year, $500,000 the second year, and $2,000,000 the third year. Management considers the expenditures for the first three years as investment in the system. Management estimates the operating cost of the system to be $2,500,000 (for personnel and other costs) in year 4 and to grow by 6% per year for years 5 through 10. The benefits are estimated to be $4,000,000 for year 4 and to grow by 30% per year for years 5…

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Chapter 5, Problem 49P

Summary Introduction

To determine: The way to maximize the total billings during the next month.

Introduction: In linear programming, the unbounded solution would occur when the objective function is infinite. If no solution satisfied the constraints, then it is said to be an unfeasible solution.

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