Q2 - Instructions Solver Solution Q2 Q1 - Instructions Problem Formulation Solver Solution Q1 Aprivate equity firm is considering five competing projects in which to invest in the upcoming quarter. The fim needs to decide how to allocate its available capital based upon the combination of projects (denoted as 1 to 5) selected to maximize returns based upon net present value (NPV). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk given as a percentage of the initial investment. The company has 543 million in capital to allocate with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met if project 2 is selected, then project is also selected: (i) either project I is selected or project I selected, but not both; (i) at least one of projects 1, 2, and 4 is selected The IP formulation for this problem is given below, Setup and see the problem in the adjacent Selver Solution Q2" worksheet and generate the answer report Table 1 Project NPV (SM) Risk Capital (SM) 19 10 + 24 27 15 Decision Variables yi - to select project i or not, No. 1-Yes, il.... Objective Punction Maximize NPV (SM) 1971+ 22 y2 + 24.73 + 27y4+ 2193 1) yI+y3424 50 Constraint Risk) 21 1471 +102 +12y3 Constraint 2 (Bolet) 3) Constraint project. The project) Constraint 4wd only of projector 3) 31 yly2y421 Constraints at least ots 1, 2,04) yer 1 (binary decision variables),-1...... 41 Q1 - Instructions Problem Formulation Solver Solution Q1 Q2 - Instructions Solver Solution Q2 Set-up the spreadsheet model and run Solver to find the optimal solution for LP formulated in the previous worksheet Cleary label or identify the decision variables, objective function and constraints. Find the optimal solution and generate the Answer report Q2 - Instructions Solver Solution Q2 Q1 - Instructions Problem Formulation Solver Solution Q1 Aprivate equity firm is considering five competing projects in which to invest in the upcoming quarter. The fim needs to decide how to allocate its available capital based upon the combination of projects (denoted as 1 to 5) selected to maximize returns based upon net present value (NPV). Table 1 below presents the capital requirements and the NPV for each project, along with the associated risk given as a percentage of the initial investment. The company has 543 million in capital to allocate with the goal of having an average associated risk of no more than 5%. There are some additional constraints to be met if project 2 is selected, then project is also selected: (i) either project I is selected or project I selected, but not both; (i) at least one of projects 1, 2, and 4 is selected The IP formulation for this problem is given below, Setup and see the problem in the adjacent Selver Solution Q2" worksheet and generate the answer report Table 1 Project NPV (SM) Risk Capital (SM) 19 10 + 24 27 15 Decision Variables yi - to select project i or not, No. 1-Yes, il.... Objective Punction Maximize NPV (SM) 1971+ 22 y2 + 24.73 + 27y4+ 2193 1) yI+y3424 50 Constraint Risk) 21 1471 +102 +12y3 Constraint 2 (Bolet) 3) Constraint project. The project) Constraint 4wd only of projector 3) 31 yly2y421 Constraints at least ots 1, 2,04) yer 1 (binary decision variables),-1...... 41 Q1 - Instructions Problem Formulation Solver Solution Q1 Q2 - Instructions Solver Solution Q2 Set-up the spreadsheet model and run Solver to find the optimal solution for LP formulated in the previous worksheet Cleary label or identify the decision variables, objective function and constraints. Find the optimal solution and generate the Answer report