This question is from the course Management Science - MGMT 430:

Consider a small Oil production firm with 6 competing oil production projects, A - F.

The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project.

You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million.

Production Projects

A

B

C

D

E

F

Estimated Profit ($million)

$26

$21

$18

$30

$28

$22

Capital required ($million)

$11

$8

$14

$19

$19

$13

1)Formulate a Binary Integer Programming (BIP) model on a spreadsheet.

2)Solver the model using Solver.

AutoSave O Off) Dropbox 5 - MGMT 430 - Management Science - JaJa Baker - Saved to this PC . Search A JaJa Baker JB X File Home Insert Design Layout References Mailings Review View Help Share Comments X Cut Find * LO Cambria 11 ~ A" A Aa A [a Copy AaBbCcDc AaBbCcD Cc Replace Paste BIUbx x A LA 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Dictate Editor Format Painter Select v Clipboard Font Paragraph Styles Editing Voice Editor Consider a small Oil production firm with 6 competing oil production projects, A - F. The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project. You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million. Production Projects A B C D E F Estimated Profit ($million) $26 $21 $18 $30 $28 $22 Capital required ($million) $11 $8 $14 $19 $19 $13 1) Formulate a Binary Integer Programming (BIP) model on a spreadsheet. 2) Solver the model using Solver. Page 1 of 1 122 words [ [ Focus + 100% 7:02 AM Type here to search O W 4/3/2021