Essentials Of Business Analytics
Essentials Of Business Analytics
1st Edition
ISBN: 9781285187273
Author: Camm, Jeff.
Publisher: Cengage Learning,
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Chapter 9, Problem 3P

Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows:

Chapter 9, Problem 3P, Spencer Enterprises is attempting to choose among a series of new investment alternatives. The

  1. a. Develop and solve an integer programming model for maximizing the net present value.
  2. b. Assume that only one of the warehouse expansion projects can be implemented. Modify your model from part (a).
  3. c. Suppose that if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation from part (b) to reflect this new situation.
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