13-14. Three alternatives are being considered for an engineering project. Their cash-flow estimates are shown in the

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13-14. Three alternatives are being considered for an engineering project. Their cash-flow estimates are shown in the accompanying table. A and B are mutually exclusive, and C is an optional add-on feature to alternative A. Investment funds are limited to $5,000,000. Another constraint on this project is the engineering personnel needed to design and implement the solution. No more than 10,000 person-hours of engineering time can be committed to the project. Set up a linear integer programming formulation of this resource allocation problem. (13.9) Alternative ABC Initial investment ($106) 4.0 4.5 1.0 Personnel requirement 7,000 9,000 3,000 (hours) Alternative AB C After-tax annual 1.3 2.2 0.9 savings, years one through four ($106) PW at 10% per year 0.12 2.47 1.85 ($106)

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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