Consider the following capital allocation problem having the net cash-flow estimates and PW values shown in the following table. MARR is 12% per year, and the ceiling on investment funds available is $1,200,000.

A1, A2 and A3 are mutually exclusive. B1 is an independent project. B2 depends on B1.

C1, C2 and C3 are mutually exclusive and dependent on acceptance of A1 or A2.

Formulate as LP model

End of year	A1	A2	A3	B1	B2	C1	C2	C3
0	-$225,000	-$290,000	-$370,000	-$600,000	-$1,200,000	-$160,000	-$200,000	-$225,000
1	40,000	56,000	25,000	60,000	26,000	12,000	17,000	6000
2	23,000	10,000	50,000	10,000	10,000	27,000	14,000	28,000
3	60,000	35,000	85,000	69,000	39,000	8000	5000	2000
PW(000)	$135.3	$146.0	$119.3	$164.1	$151.9	$8.1	$13.1	$2.3

Consider the following capital allocation problem having the net cash-flow estimates and PW values shown in the following table. MARR is 12% per year, and the ceiling on investment funds available is $1,200,000. A1, A2 and A3 are mutually exclusive. Bl is an independent project. B2 depends on BI. CI, C2 and C3 are mutually exclusive and dependent on acceptance of Al or A2. Formulate as LP model cl C2 C3 End of lyear Al A2 A3 BI B2 Jo -$225,000-$290,000-$370,000-$600,000-$1,200,000-$160,000-$200,000-$225,000 n 40,000 56,000 25,000 60,000 26,000 12,000 17,000 6000 12 23,000 10,000 50,000 10,000 10,000 27,000 14,000 28,000 3 60,000 35,000 85,000 69,000 39,000 8000 5000 2000 pw(000) $135.3 $146.0 $119.3 $164.1 $151.9 $8.1 $13.1 $2.3