Question: please solving the problem with showing steps A firm has six projects that it would like to undertake over the next five years but because

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A firm has six projects that it would like to undertake over the next five years but because of budget limitations not all can be selected. The total budget that the firm has considered to invest in the projects is $12,400,000. The following table displays the expected revenue (NPV) of each project after 5 years and the required yearly capital for each investment. Capital (in $000) required per year Investment/ Expected Project NPV ($000) Year 1 Year 2 Year 3 Year 4 Year 5 1 $2700 $975 $350 $200 $100 $50 2 $3330 $1200 $200 $200 $200 $200 3 $7010 $2500 $1200 $850 $400 $400 4 $5770 $1550 $1350 $675 $337.5 $168.75 5 $2900 $1400 $350 $87.5 $21 $0 6 $4870 $1900 $1900 $350 $350 $350 The capital available for the time period of each year is shown in the following table: (The $12,400,000 in investment capital is spread over the 5 years) Year 1 $ 5800 Capital (in $000) allocated per year Year 2 Year 3 Year 4 $ 3500 $ 1350 $ 900 Year 5 $ 900 In addition, the firm must follow a few federal and state laws regarding these projects: 1. Surplus capital funds in any year cannot be carried over from year to year. 2. If the firm decides to invest in the fourth investment/project, it must also invest in the second. 3. If the firm decides to invest in the first investment/project, it cannot invest in the third investment project. Considering the budget limitations and the laws, which of the investments/projects should be chosen to maximize potential NPV? Formulate the Integer Linear Programming model in algebraic form and use Excel Solver to find a solution. Provide a printout of your answer report (attach the excel file to your submission)

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