QUESTION 2 A company has 9 projects under considerations. The following table provides the cash outflows required by each project during the next two years, and the net present value added by each project. All numbers in the table are in millions of dollars. Project 1 2 3 4 5 6 7 8 9 cash outflow 10 9 8 8 10 6 8 6 18 cash outlow 3 7 5 2 20 8 4 3 3 sent Valse NPV) 14 17. 16 15 36 15 14 12 25 The company has $50 million arailable for projects during year 1. and $20 million available during year 2. The fund left over in year 1 can be used in year 2. Assume that the company may undertake a fraction of each project. Formulate LPs baly Seems to maximize the NPV of its investmet plan Using What'sBest to solve the LP, we obtain that the optimal investment plan is to undertake of project 1. V of project 2, v of project 3, of project , of project 5, v of project 6, of project 7. of projecte, and of project 9. The maximum NPV 19 6 million. V QUESTION 2 A company has 9 projects under considerations. The following table provides the cash outflows required by each project during the next two years, and the net present value added by each project. All numbers in the table are in millions of dollars. Project 1 2 3 4 5 6 7 8 9 cash outflow 10 9 8 8 10 6 8 6 18 cash outlow 3 7 5 2 20 8 4 3 3 sent Valse NPV) 14 17. 16 15 36 15 14 12 25 The company has $50 million arailable for projects during year 1. and $20 million available during year 2. The fund left over in year 1 can be used in year 2. Assume that the company may undertake a fraction of each project. Formulate LPs baly Seems to maximize the NPV of its investmet plan Using What'sBest to solve the LP, we obtain that the optimal investment plan is to undertake of project 1. V of project 2, v of project 3, of project , of project 5, v of project 6, of project 7. of projecte, and of project 9. The maximum NPV 19 6 million. V