A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firms goal is to maximize the net present value of their decision while not spending more than their currently available capital.

Max 35x1 + 25x2 + 15x3+ 30x₄ s.t.

7x1 + 8x₂ + 7x3 + 13x4 18 {Constraint 1}

x1 + x2 + x3 + x4 2 {Constraint 2}

x1 + x2 1 {Constraint 3}

x1 + x3 1 {Constraint 4}

x2 = x4 {Constraint 5}

xj = 0, 1

Solve this problem to optimality and answer the following questions: Which of the warehouse locations will/will not be selected? Location 1 will

Answer Location 2 will

Answer Location 3 will

Answer Location 4 will

Answer What is the net present value of the optimal solution? (Round your answer to the nearest whole number.)

Net present value Answer How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.)

Available capital Answer