A medical device company is allocating next year€™s budget among its divisions. As a result, the R&D Division needs to determine which research and development projects to fund. Each project requires various software and hardware and consulting expenses, along with internal human resources. A budget allocation of $1,300,000 has been approved, and 35 engineers are available to work on the projects. The R&D group has determined that at most one of projects 1 and 2 should be pursued, and that if project 4 is chosen, then project 2 must also be chosen. Develop a model to select the best projects within the budget.

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Project NPV S600,000 680,000 550.000 400,000 350,000 725,000 340,000 Internal Engineers Additional Costs S196,000 400,000 70,000 180,000 225.000 275,000 130,000 12 10