Selecting Projects. The Texas Electronics Company (TEC) is contemplating a research and development program encompassing eight major projects. The company is constrained from embarking on all projects by the budget available for projects ($300,000). Following are the resource requirements and the estimated profit for each project:

	P1	P2	P3	P4	P5	P6	P7	P8
Expense ($000)	55	80	60	69	91	98	103	110
Profit ($000)	48	51	64	84	70	63	71	32
Engineers	6	5	8	5	6	8	8	6

1. What is the maximum profit, and which projects should be selected?
2. Suppose that management decides that projects 2 and 3 are mutually exclusive. (In other words, TEC will not undertake both). What are the revised project portfolio and the revised maximum profit?
3. Suppose that management also decides to undertake at least two of projects 5-8. As a result, what are the revised project portfolio and maximum profit? (Assume b. is also true)

Hint: In Excel, create different tabs for parts a, b, and c. Solve independently of each other. Break down the problem in the following ways like objective, decision variables, and constraints.