Riesemberg Medical Devices is allocating next year’s budget among its divisions. As a result, the R& D Division needs to determine which R& D projects to fund. Each project requires various software and hardware and consulting expenses, along with internal human resources. A budget allocation of $ 1,300,000 has been approved, and 35 engineers are available to work on the projects. The R& D group has determined that at most one of projects 1 and 2 should be pursued, and that if project 4 is chosen, then project 2 must also be chosen. Develop a model to select the best projects within the budget.

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NPV $600,000 680,000 550,000 400,000 350,000 725,000 340,000 Project Internal Engineers 9 12 Additional Costs $196,000 400,000 70,000 180,000 225,000 275,000 130,000 2 3 5 6 7 8 10 8