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A service company is considering six investments investment opportunities. The cash outflows and net present values (in millions of dollars) are given in the table
A service company is considering six investments investment opportunities. The cash outflows and net present values (in millions of dollars) are given in the table below. The company has $60 million available for investment and estimates that one year from now, $30 million will be available for investment. The company may purchase any fraction of each investment. In this case, the cash outflows and net present value (NPV) are adjusted accordingly. For example, if the company purchases one-fifth of investment 3 , then a cash outflow of (1/5)5=$1 million would be required at time 0 , and a cash outflow of (1/5)5=$1 million would be required at time 1 . The one-fifth share of investment 3 would yield an NPV of (1/5)16=$3.2 million. The company wants to maximize the NPV that can be obtained by investing in investments 15. Which of the following is the algebraic or standard form LP model that will help achieve this goal? Assume any funds left over at time 0 cannot be used at 1 . Max13X1+16X2+16X3+14X4+39X5s.t.11X1+53X2+5X3+5X4+29X5403X1+6X2+5X3+X4+34X520X11X21X31X41X51Max13X1+16X2+16X3+14X4+39X5s.t.11X1+53X2+5X3+5X4+29X5403X1+6X2+5X3+X4+34X520X11X21X31X41X51Max13X1+16X2+16X3+14X4+39X5s.t.11X1+53X2+5X3+5X4+29X5403X1+6X2+5X3+X4+34X520X11X21X31X41X51 Max11X1+53X2+5X3+5X4+29X5s.t.13X1+16X2+16X3+14X4+39X5403X1+6X2+5X3+X4+34X520X11X21X31X41X51M23X1+6X2+5X3+X4+34X5s.t.11X1+53X2+5X3+5X4+29X54013X1+16X2+16X3+14X4+39X520X11X21X31X41X51
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