Questions

Problem $13-05($Applications Involving Binary Variables$)$

Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present summarized as follows:

$\backslash$table$[[$Alternative$,$Net Present Value $($ $ $),$Capital Requirements $($ $ $)],[$Year $1,$Year $2,$Year $3],[\backslash$table$[[$Limited warehouse expansion$],[$Extensive warehouse expansion$],[$Test market new product$],[$Advertising campaign$],[$Basic research$],[$Purchase new equipment$],[$Capital funds available$]],\backslash$table$[[4,000],[6,000],[10,500],[4,000],[8,000],[3,000]],\backslash$table$[[3,000],[2,500],[6,000],[2,000],[5,000],[1,000],[10,500]],\backslash$table$[[1,000],[3,500],[4,000],[1,500],[1,000],[500],[7,000]],\backslash$table$[[4,000],[3,500],[5,000],[1,800],[4,000],[900],[8,750]]]]$

$($a$)$ Develop and solve an integer programming model for maximizing the net present value.

$L$ et $x={\displaystyle \underset{\phantom{}}{\overset{\phantom{}}{}}}$ if investment alternative $t$ is selected