Question: Suppose you are trying to maximize NPV (net present value). You have five (5) potential projects to choose from. There is a maximum amount available

Suppose you are trying to maximize NPV (net present value). You have five (5) potential projects to choose from. There is a maximum amount available each year for project expenses, at least three projects must be chosen, and if Project B is chosen then Project D must also be chosen. Here is the problem information: Here is the total amount available for project expenses for Years 1 through 5: 1) Write out the mathematical model for this problem. Be sure to include the objective function, decision variables, and constraints. 2) Setup the binary integer linear programming model in Excel to determine the optimal solution (which projects should be chosen) and the resulting NPV. Use Solver to find the optimal solution
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
