Question
A company has the possibility of investing in 8 projects. The net present value (NPV) of the profit that each project generates, as well as
A company has the possibility of investing in 8 projects. The net present value (NPV) of the profit that each project generates, as well as the capital that you have to invest if you decide to participate in each project is shown in the table. The table reads as follows, for example, if you decide to invest in project 1, it implies a profit of $10,000, for which you require an investment of $5,000 in year 0 and $3,000 in year 1, $ 2,500 in year 2 and $1,000 in year 3. The company's minimum budget in year 0 is $12,000, in year 1 it is minimum $6,000, in year 2 it is maximum $15 thousand and in year 3 a maximum of $6 thousand. The mutually exclusive projects are 2, 5 and 6, that is, if you invest in project 2, you cannot invest in project 5 or 6 or if you invest in project 5, you cannot invest in project 2 or 6 or if you invest in project 6 you cannot invest in project 2 or 5. Finally, you must consider that you cannot do project 2 without doing project 4. Formulate a model of mixed-integer programming to maximize the company's profits from its investments
Question: How much do you have to invest in year 2 to maximize your earnings?
choose the correct answer
a) 14,300 b) 15,300 c) 11,300 d) 19,300 e) 22,800 f) 17,800
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