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Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below.
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. Projects 5 and 3 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 2 3 4 5 Cost $255,000 $230,000 $270,000 $250,000 $260,000 Project 1 will Project 2 will Project 3 will Project 4 will Project 5 will Which projects should be selected? Net Present Value $760,000 $670,000 $690,000 $620,000 $780,000 What is the total net present value of these projects? Total net present value
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