irm has prepared the following binary integer program to evaluate a number of potential locations for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
irm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 30x1 + 30x2 + 25x3+ 35x4 s.t. 10x1 + 12x2 +5x3 +13x4 15 (Constraint 1) x1 x2 x3x4 2 2 (Constraint 2) x1 x21 (Constraint 3) x1+x3 21 (Constraint 4) x2x4 (Constraint 5) 1, if location j is selected Ij = 10, otherwise Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? Location 1 will Location 2 will Location 3 will Location 4 will b. What is the net present value of the optimal solution? (Round your answer to the nearest whole number.) Net present value c. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.) Available capital irm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 30x1 + 30x2 + 25x3+ 35x4 s.t. 10x1 + 12x2 +5x3 +13x4 15 (Constraint 1) x1 x2 x3x4 2 2 (Constraint 2) x1 x21 (Constraint 3) x1+x3 21 (Constraint 4) x2x4 (Constraint 5) 1, if location j is selected Ij = 10, otherwise Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? Location 1 will Location 2 will Location 3 will Location 4 will b. What is the net present value of the optimal solution? (Round your answer to the nearest whole number.) Net present value c. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.) Available capital irm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 30x1 + 30x2 + 25x3+ 35x4 s.t. 10x1 + 12x2 +5x3 +13x4 15 (Constraint 1) x1 x2 x3x4 2 2 (Constraint 2) x1 x21 (Constraint 3) x1+x3 21 (Constraint 4) x2x4 (Constraint 5) 1, if location j is selected Ij = 10, otherwise Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? Location 1 will Location 2 will Location 3 will Location 4 will b. What is the net present value of the optimal solution? (Round your answer to the nearest whole number.) Net present value c. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.) Available capital irm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 30x1 + 30x2 + 25x3+ 35x4 s.t. 10x1 + 12x2 +5x3 +13x4 15 (Constraint 1) x1 x2 x3x4 2 2 (Constraint 2) x1 x21 (Constraint 3) x1+x3 21 (Constraint 4) x2x4 (Constraint 5) 1, if location j is selected Ij = 10, otherwise Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? Location 1 will Location 2 will Location 3 will Location 4 will b. What is the net present value of the optimal solution? (Round your answer to the nearest whole number.) Net present value c. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.) Available capital
Expert Answer:
Answer rating: 100% (QA)
To calculate the net present value NPV of the optimal solution we need to first determine the values of x y z and w which we found to be x 1 y 1 z 0 w 1 Now well substitute these values into the objec... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
Posted Date:
Students also viewed these accounting questions
-
A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not...
-
One way to delete nodes from a known position in a leftist heap is to use a lazy strategy. To delete a node, merely mark it deleted. When a findMin or deleteMin is performed, there is a potential...
-
The latent heat of vaporization of H2O at body temperature (37.0 oC) is 2.42 106 J/kg. To cool the body of a 75-kg jogger [average specific heat capacity = 3500 J / (kg Co)] by 1.5 Co, how many...
-
Each of the following independent situations has one or more control activity weaknesses. 1. Board Riders Ltd. is a small snowboarding club that offers specialized coaching for snowboarders who want...
-
Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively. Their net cash flow (NCF) and salvage value (SV) profiles are as follows: Additional explanation is necessary: The NCF profile...
-
The Brown Shoe Company produces its famous shoe, the Divine Loafer that sells for $60 per pair. Operating income for 2011 is as follows: Sales revenue ($60 per pair) $300,000 Variable cost ($25 per...
-
The demand curve for cookies is a rightward curve and the quantity demanded is 100 when the price of cookies is $2.00. What happens to consumer surplus when the price is $3.00? What happens to...
-
(e) From the following graph of velocity us time for the motion of a body with mass m = 1.5 kg, Find (i) Force during Is to 3s. (ii) Force during 8s to 9s. (iii) Work done during Is to 9s. (iv)...
-
Choose the correct option. A partnership is established with two General partners each contributing $500,000 to the Partnership, and third Limited Liability Partner who contributed $200,000 and...
-
According to the research, financial ratio in healthcare measures the hospital's ability to meet its current liabilities with its current assets (assets expected to be realized in cash during the...
-
When a company's current liabilities exceed its current assets, the company Select answer from the options below may have unearned revenues. may have a liquidity problem. has too much cash on hand....
-
Several investments with the same principal and annual interest rate are compared, but they each have different compounding periods. Which compounding period option would earn the lowest total...
-
Discuss the individuals circumstances as well as the individuals tolerance for risk, in the context of the selection of an individual investment portfolio. Balance risk and return, as well as...
-
-GEOGRAPHY: S hed Loads of Practice (SLOP) Modern life in the Arctic Name three human activities in the Arctic . Match the human activities to the definition . Oil and gas exploratio Tourism Fishing...
-
Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is: Joint cost of production in July 2012 was $50. A...
-
List and discuss four characteristics about IPOs that are puzzling?
-
What are some common approaches to hedging commodity price risk?
-
What implication does the Law of One Price have for the price of a financial security?
-
Supposing that all systems in Figure 1.27 are linear and time invariant, compute \(y(n)\) as a function of the input and the impulse responses of each system. x(n) h(n) h(n) h(n) Fig. 1.27. Linear...
-
Find one solution for each of the difference equations below: (a) \(y(n)+2 y(n-1)+y(n-2)=0, y(0)=1\) and \(y(1)=0\) (b) \(y(n)+y(n-1)+2 y(n-2)=0, y(-1)=1\) and \(y(0)=1\).
-
We define the even and odd parts of a sequence \(x(n), \mathcal{E}\{x(n)\}\) and \(\mathcal{O}\{x(n)\}\) respectively, as \[\begin{aligned}\mathcal{E}\{x(n)\} & =\frac{x(n)+x(-n)}{2}...
Study smarter with the SolutionInn App