The American Radio Relay League is using a binary linear programming (BLP) formulation to select from among several possible investments. Each investment continues for 5 years. Given the incomplete SOLVER parameter box shown, respond to Parts

a- \(\mathrm{f}\) below in order to obtain the optimum investment portfolio. Assume \(\$ 180,000\) is available for investment and all investments are indivisible.

a. Specify the contents of the target cell.

b. Specify the contents for "By Changing Cells:"

c. Specify all constraints to be added.

d. Now, suppose the original problem is modified so that Investments 4 and 5 are mutually exclusive. Show how you would incorporate that constraint in SOLVER.

e. Now, suppose the original problem is modified so that Investment 6 is contingent on Investment 5 being pursued. Show how you would incorporate that constraint in SOLVER.

f. Now, suppose the original problem is modified so that exactly three investments must be pursued. Show how you would incorporate that constraint in SOLVER.

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D F G H 1 2 LINEAR PROGRAMMING FORMULATION FOR A CAPITAL BUDGETING PROBLEM 3 INVESTMENT OPPORTUNITY 4 INITIAL INVESTMENT 5 ANNUAL RETURN 6 SALVAGE VALUE 7 PRESENT WORTH 8 INTERNAL RATE OF RETURN 9 VALUE OF X 10 PORTFOLIO INVESTMENT 11 PORTFOLIO PRESENT WORTH 12 MARR 13 INVESTMENT PERIOD 1 2 3 4 5 6 $25,000.00 $35,000.00 $30,000.00 $40,000.00 $60,000.00 $50,000.00 $2,600.00 $3,750.00 $3,050.00 $4,775.00 $6,750.00 $5,850.00 $25,000.00 $35,000.00 $30,000.00 $40,000.00 $60,000.00 $50,000.00 $947.70 $189.54 $2,937.86 $2,843.09 $3,222.17 10.71% 10.17% 11.94% $379.08 10.40% 11.25% 1 1 1 1 1 11.70% 1 10% 5 $25,000.00 $35,000.00 $30,000.00 $40,000.00 $60,000.00 $50,000.00 $240,000.00 $379.08 $947.70 $189.54 $2,937.86 $2,843.09) $3,222.17 $10,519.43 CAP CONSTRAINT $180,000.00 14 Solver Parameters 15 16 Set Target Cell: Solve 17 Equal To Max Yalue of: Close 18 By Changing Cells: 19 Guess 20 Subject to the Constraints: Options 21 Add 22 23 Change Beset All 24 Delete belp 26