Question: Which projects should be selected? What is the total net present value of these projects? Your employer is trying to select from a list of

Which projects should be selected? What is the Which projects should be selected? What is the total net present value of these projects?

Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 3 projects. Projects 2 and 5 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 2 3 4 5 Cost $225,000 $200,000 $235,000 $275,000 $275,000 Net Present Value $770,000 $580,000 $400,000 $630,000 $720,000 Which projects should be selected

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