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A company has identified a number of promising projects, as indicated in the following table. The cash flows for the first 2 years are shown
A company has identified a number of promising projects, as indicated in the following table. The cash flows for the first 2 years are shown (they are all negative). The cash flows in later years are positive, and the net present value of each project is shown. The company managers have allocated up to $250,000 in each of the first 2 years to fund these projects. If less than $250,000 is used the first year, the balance can be invested at 10% and used to augment the next year's budget. Using a Linear Programming model, find the optimal cost of projects funded in the first year? Projects Year 1 Year 2 NPN 1 -100 -60 200 2 -80 -70 170 3 -50 -60 190 4 -60 -90 200 5 -90 -70 170 6 -80 -90 220 A company has identified a number of promising projects, as indicated in the following table. The cash flows for the first 2 years are shown (they are all negative). The cash flows in later years are positive, and the net present value of each project is shown. The company managers have allocated up to $250,000 in each of the first 2 years to fund these projects. If less than $250,000 is used the first year, the balance can be invested at 10% and used to augment the next year's budget. Using a Linear Programming model, find the optimal cost of projects funded in the first year? Projects Year 1 Year 2 NPN 1 -100 -60 200 2 -80 -70 170 3 -50 -60 190 4 -60 -90 200 5 -90 -70 170 6 -80 -90 220
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