Question: Proposals A, B, C, D, E, F and G are being considered with money flows over 10 years. A B C D E F G

Proposals A, B, C, D, E, F and G are being considered with money flows over 10 years.

A

B

C

D

E

F

G

Investment

$30,000

$,000

$60,000

$37,000

$7,000

$47,000

$23,000

Net Annual Benefit

$6,000

$1,200

$12,000

$8,000

$1,400

$10,000

$6,200

Salvage Value

$3,000

$0

$5,000

$2,000

$500

0

$1,000

Proposal (A and G) are mutually exclusive, (C and D) are also mutually exclusive, and proposal B depends on C or D. The MARR is set at 9%. a) Formulate the problem with Integer Programming. b) Which proposal(s) should be selected if the amount of money available for investment is $100,000?

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