(CWE budgeting, 20) The engineer at Clean Water Engineering (CWE) has established a capital investment limit...

 

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(CWE budgeting, 20) The engineer at Clean Water Engineering (CWE) has established a capital investment limit of $1 million for next year's projects that target improved recovery of highly brackish groundwater. The following projects are under consideration, using an interest rate of 10% per year. Each project involves an initial cash outlay followed by a uniform stream of annual revenues. Initial Outlay ($1,000) Annual revenue ($1,000/year) Project Life (years) 1 -150 70 4 2 -300 90 5 3 -350 100 6 4 -420 110 7 (a) Determine a "good" solution in terms of the projects that should be selected for investment. (b) Formulate CWE problem as an integer-linear program. (c) Suppose now that if Projects 3 is selected, Project 4 cannot be selected, and vice versa. Suppose also that Project 3 has Projects 1 and 2 as predecessors (i.e., Project 3 cannot be selected unless Projects 1 and 2 are selected). Reformulate CWE problem with these additional restrictions. (CWE budgeting, 20) The engineer at Clean Water Engineering (CWE) has established a capital investment limit of $1 million for next year's projects that target improved recovery of highly brackish groundwater. The following projects are under consideration, using an interest rate of 10% per year. Each project involves an initial cash outlay followed by a uniform stream of annual revenues. Initial Outlay ($1,000) Annual revenue ($1,000/year) Project Life (years) 1 -150 70 4 2 -300 90 5 3 -350 100 6 4 -420 110 7 (a) Determine a "good" solution in terms of the projects that should be selected for investment. (b) Formulate CWE problem as an integer-linear program. (c) Suppose now that if Projects 3 is selected, Project 4 cannot be selected, and vice versa. Suppose also that Project 3 has Projects 1 and 2 as predecessors (i.e., Project 3 cannot be selected unless Projects 1 and 2 are selected). Reformulate CWE problem with these additional restrictions.

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a To determine a good solution in terms of the projects that should be selected for investment we ca... View the full answer