Question: use excel to solve Problem 2: Fox Enterprises is considering six projects for possible construction over the next 4 years. Fox can undertake any of

use excel to solve use excel to solve Problem 2: Fox Enterprises is
Problem 2: Fox Enterprises is considering six projects for possible construction over the next 4 years. Fox can undertake any of the projects partially completely. A partial undertaking of a project will prorate both the return and cash outlays proportionately. The expected (present value) returns and cash outlays for the projects are given in the following table. Project Year 4 2.4 Year 1 10.5 8.3 10.2 7.2 12.3 9.2 Cash outlay (S1000) Year 2 Year 3 2.2 12.6 9.5 14.2 5.6 10.5 10.1 8.3 6.9 3.1 4.2 5.0 6.3 Return (S1000) 32.40 35.80 17.75 14.80 18.20 12.35 7.8 Available funds (S1000) (a) Formulate the problem to determine the optimal project mix that maximizes the total return. (b) Suppose that if a portion of project 2 is undertaken, then at least an equal portion of projects 6 must be undertaken. Modify the formulation of the model

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!