Construction project A, B, C, D, E are considered to be completed with the following capital. Plus, net present value for each project is also estimated to evaluate the maximum total profit. (NPV is the difference between the present value of cash inflows and cash outflows over a period of time.)

Year/Project	A	B	C	D	E
1	8	10	12	4	14
2	6	8	6	3	6
3	3	7	6	2	5
4	0	5	6	0	7

Table 4a. capital (in million dollars) for the five construction projects

Net Present Value

12

28

20

10

23

Table 4b. net present value (in million dollars) for the five construction projects

There are also several mandatory requirements on these projects.

Requirement I

Each project can either be fully invested or not invested at all

Requirement II

Project 2 and Project 3 are consecutive projects which should be both chosen or withdrawn

Requirement III

Project 3 and Project 4 will create practical contradiction if one and the other are undertaken

Requirement IV

Cash available for Year 1, 2, 3, and 4 is 40, 25, 16, and 12 million respectively

(Hint: note that either capital or money available have to be and can be cumulated for calculation)

Given the information, you are required to:

(a) Formulate an algebraic model by Excel

(b) Solve the formulated model with a spreadsheet