USE DYNAMIC PROGRAMMING

An electronic company is contemplating to invest in five projects to improve its operation in the manufacture of high density compact disc. The company has a budget of $10 million. It is required that the company has to invest in at least 1 project. The following are the information provided by the company on the four projects:

Project	Investment Per Project (in Million $)	Number of Projects	Per Project
			Revenue (in Million $)	Cost (in Million $)	Operating Expenses (in Million $)
A	2.0	2	3.75	1.25	0.10
B	2.0	3	5.25	2.50	0.15
C	1.0	2	5.75	1.30	0.20
D	1.0	3	5.35	1.20	0.25
E	2.0	3	4.55	1.05	1.30

a) Define Stage.

b) Define State.

c) Define the Decision Alternative

d) Starting with Project E as Stage 5, what is the recursive equation at this stage?

e) What is the minimum state at Stage 5?

f) What is the minimum state at Stage 3 (Project C)?

g) What is the optimal reward at State 10 in Stage 4 (Project D)?

h) What is the minimum state at Stage 1 (Project A)?

i) What is the optimal profit at stage 1?

j) Is there an alternative solution (Answer Yes or No)?