Question: 5. (20 points) Consider the following capital budgeting problem (also called Lorie-Savage problem as being introduced by these researchers in 1955), select the subset

5. (20 points) Consider the following capital budgeting problem (also called Lorie-Savage

5. (20 points) Consider the following capital budgeting problem (also called Lorie-Savage problem as being introduced by these researchers in 1955), select the subset of projects that maximizes the present value of the selected projects subject to the budget constraints if we are given the following 7 projects:+ + Project j+ Present Value of Project j: rj Cost of Project j: Wj (in million dollars) (in million dollars) 1+ 14+ 12+ 2 17+ 6+ 3 15 6+ 4 12 6+ 5 14 48+ 6+ 10+ 36 7+ 12 18 Solve the problem with dynamic programming if the budget is equal to $50 million dollars.

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