The Yates Corporation has tentatively allocated up to $40 million for capital investments among the following...

Transcribed Image Text:

The Yates Corporation has tentatively allocated up to $40 million for capital investments among the following 5 projects. Each project's NPV and expenditure are shown below in terms of millions of dollars. Project 1 2 3 4 5 NPV 1.9 3.6 3.1 1.6 2.8 Expenditure 12 24 20 8 16 Project Type Domestic International Domestic Domestic International A. (12 points) In your PDF report: Define your variables and formulate an algebraic model to maximize NPV. Use good form (all variables on the LHS of constraints, etc.). Clearly present your solution (variables and objective value) to the original problem. For parts c and d, indicate what constraint(s) you would add to the original model for each modification, and clearly present your solutions to the revised problems. B. (4 points) Create an Excel model to find the optimal solution to the Name this worksheet 3B. C. (2 points) In your Excel file, create a model that adds a constraint that at least one international project must be selected. Name this worksheet 3C. D. (2 points) In your Excel file, create a model that adds to the 3C model (at least one international project) by also including a constraint that Project 3 must be selected whenever Project 5 is chosen. Name this worksheet 3D. The Yates Corporation has tentatively allocated up to $40 million for capital investments among the following 5 projects. Each project's NPV and expenditure are shown below in terms of millions of dollars. Project 1 2 3 4 5 NPV 1.9 3.6 3.1 1.6 2.8 Expenditure 12 24 20 8 16 Project Type Domestic International Domestic Domestic International A. (12 points) In your PDF report: Define your variables and formulate an algebraic model to maximize NPV. Use good form (all variables on the LHS of constraints, etc.). Clearly present your solution (variables and objective value) to the original problem. For parts c and d, indicate what constraint(s) you would add to the original model for each modification, and clearly present your solutions to the revised problems. B. (4 points) Create an Excel model to find the optimal solution to the Name this worksheet 3B. C. (2 points) In your Excel file, create a model that adds a constraint that at least one international project must be selected. Name this worksheet 3C. D. (2 points) In your Excel file, create a model that adds to the 3C model (at least one international project) by also including a constraint that Project 3 must be selected whenever Project 5 is chosen. Name this worksheet 3D.

Answer rating: 100% (QA)

A Algebraic Model Lets define the decision variables X1 Investment in Project 2 in millions of dollars X2 Investment in Project 3 in millions of dolla... View the full answer