Your employer is trying to select from a list of possible capital projects. The projects, along...

Transcribed Image Text:

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 2 projects. Projects 3 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value 1 $280,000 $680,000 2 $235,000 $720,000 3 $285,000 $570,000 4 $200,000 $410,000 5 $205,000 $550,000 Which projects should be selected? Project 1 will be selected Project 2 will be selected Project 3 will not be selected Project 4 will be selected Project 5 will be selected What is the total net present value of these projects? Total net present value 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 2 projects. Projects 3 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project Cost Net Present Value 1 $280,000 $680,000 2 $235,000 $720,000 3 $285,000 $570,000 4 $200,000 $410,000 5 $205,000 $550,000 Which projects should be selected? Project 1 will be selected Project 2 will be selected Project 3 will not be selected Project 4 will be selected Project 5 will be selected What is the total net present value of these projects? Total net present value