Real Estate Project Selection. Brooks Development Corporation $($BDC$)$ faces the

following capital budgeting decision. Six real estate projects are available for

investment. The net present value and expenditures required for each project $($in

millions of dollars$)$ are as follows:

DATA file

brooks There are conditions that limit the investment alternatives:

At least two of projects $1,3,5,$ and $6$ must be undertaken.

If either project $3$ or $5$ is undertaken, they must both be undertaken.

Project $4$ cannot be undertaken unless both projects $1$ and $3$ also are

undertaken.

The budget for this investment period is $$220$ million. $LO2,LO4,LO5,LO7$

a$.$ Formulate a binary integer program that will enable BDC to find the projects

to invest in to maximize net present value, while satisfying all project

restrictions and not exceeding the budget.

b$.$ Solve the model formulated in part $($a$).$ What is the optimal net present

value? Which projects will be undertaken? How much of the budget is unused?