Question: 10-17 A real estate developer is considering three possible projects: a small apartment complex, a small shopping center, and a mini-warehouse. Each of these requires
10-17 A real estate developer is considering three possible projects: a small apartment complex, a small shopping center, and a mini-warehouse. Each of these requires different funding over the next 2 years, and the net present values of the investments atso vary. The following table provides the required investment amounts (in $1,000 ) and the net present value (NPV) of each (also expressed in $1,000 ): The company has $80,000 to invest in year 1 and $50,000 to invest in year 2 . a. Develop an integer programming model to maximize the NPV in this situation. NPV=181+152+143 b. Solve the problem in part (a) using computer software. Which of the three projects would be undertaken if NPV is maximized? How much money would be used each year? He should butild one shopping center and an apartinent to maximize NPV Yearl: 80,000 year2: 30,u0y 10-18 Refer to the real estate investment situation in Problem 10.17 a. Suppose that the shopping center and the apartment complex would be on adjacent properties and that the shopping center would be considered only if the apartment complex were also built. Formulate the constraint that would stipulate this: b. Formulate a constraint that would force exactly two of the three projects to be undertaken
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