Question
A firm is considering several new products. There are three groups of products: A, B, C. Only one product from each group will be selected
A firm is considering several new products. There are three groups of products: A, B, C. Only one product from each group will be selected for development. Data concerning these groups and product candidates appears below
| Group | Product | Cost | CF |
| A | A1 | 500000 | 90000 |
| A2 | 650000 | 110000 | |
| A3 | 700000 | 115000 | |
| B | B1 | 600000 | 105000 |
| B2 | 675000 | 112000 | |
| C | C1 | 800000 | 150000 |
| C2 | 1000000 | 175000 |
Assuming a MARR of 10%, a useful life of 10 years for each product, and budget cap of $2,100,000, formulate an integer program to select a product from each group.
Could you show how to do this in Excel Solver Add-in
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
