Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream

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Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows:

a. Develop and solve an integer programming model for maximizing the net present value.
b. Assume that only one of the warehouse expansion projects can be implemented. Modify your model of part (a).
c. Suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation of part (b) to reflect this newsituation.

Capital Requirements () Net Present Value (S) 4,000 6,000 10,500 4,000 8,000 3,000 Yea Yea 2 Year 3 4,000 3.500 5,000 1,800 4,000 900 8,750 Alternative Limited warehouse expansion Extensive warehouse expansion Test market new product Advertising campaign Basic research Purchase new equipment 3,000 1,000 2,500 3,500 4,000 2,000 ,500 5,000 1,000 500 6,000 1,000 0,500 Capital funds available 7,000