(25 points) An investement firm is considering four possible investments. Investment I will yield a net...
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(25 points) An investement firm is considering four possible investments. Investment I will yield a net present value (NPV) of 16000 SGD; investment 2, an NPV of 22000 SGD; investment 3, an NPV of 12000 SGD; and investment 4, an NPV of 8000 SGD. Each investment requires a certain cash outflow at the present time: investment 1, 5000; investment 2, 7000; investment 3, 4000; and investment 4, 3000. Currently, 14000 SGD are available for investing. (1) (5 points) Formulate an integer linear program that will enable the investment firm to decide which investments to choose so that the NPV of the investment portfolio is maxi- mized. (2) (10 points) Solve (to optimality) the ILP found in the first part using the branch and bound method. Give the full B&B tree. (3) (10 points) Explain how you can model the following additional constraints in your ILP: (i) If we select investment 4 we cannot select investment 4. (ii) If we select investment 4 we also need to select investment 3. (iii) We either select at most one among investments 1 and 3 or we select both investments 4 and 3. (iv) If we select investment 1 then we cannot select investments 3 and 4. (25 points) An investement firm is considering four possible investments. Investment I will yield a net present value (NPV) of 16000 SGD; investment 2, an NPV of 22000 SGD; investment 3, an NPV of 12000 SGD; and investment 4, an NPV of 8000 SGD. Each investment requires a certain cash outflow at the present time: investment 1, 5000; investment 2, 7000; investment 3, 4000; and investment 4, 3000. Currently, 14000 SGD are available for investing. (1) (5 points) Formulate an integer linear program that will enable the investment firm to decide which investments to choose so that the NPV of the investment portfolio is maxi- mized. (2) (10 points) Solve (to optimality) the ILP found in the first part using the branch and bound method. Give the full B&B tree. (3) (10 points) Explain how you can model the following additional constraints in your ILP: (i) If we select investment 4 we cannot select investment 4. (ii) If we select investment 4 we also need to select investment 3. (iii) We either select at most one among investments 1 and 3 or we select both investments 4 and 3. (iv) If we select investment 1 then we cannot select investments 3 and 4.
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Horngrens Cost Accounting A Managerial Emphasis
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17th Edition
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