A unit price proposal for modernization and improvement of an existing port facility is shown below. Item Description Unit Unit Price Item Total Quantity (estimated) 1 1 Lump sum 2 3 4 5 6 Removal: Existing Structure Dredging Bulkhead: Fill Bulkhead: Sheet piling Pier: Concrete Piling Pier: Case-in-place Concrete Pier: Appurtenances Utilities: Water/Elec yds yds3 Lineal feet Lineal feet yds3 74,000 34,000 24,000 62,000 18,800 7 8 Lump sum Lump sum 1 1 Bit Total = After reviewing the project and assessing the potential competition, one bidder desires to submit a bid of $6,980,000. Given this bidder's quantity estimates, anticipated construction schedule, and allowable range of unit price as shown in the table which follows, formulate a linear program to maximize the present worth of revenue. Assume the bidder, if successful, will be paid in full at the end of each year for work in place and that a 15% annual interest rate is appropriate for discounting. Bidder's Construction Schedule Year 1 Year 2 Year 3 Item Range of Unit Prices 1 30,000 28,000 9,500 1 2 3 4 5 6 7 8 Quantity (Estimated) 1 (lump sum) 78,000 (yds) 33,500 (yds) 26,000 (ft) 66,000 (ft) 18,000 (yds) 1 (lump sum) 1 (lump sum) 20,000 24,000 26,000 22,000 $240,000-280,000 $8.00-9.20 9.00-12.00 $13.00-15.00 $$48.00-66.00 $78.00-94.00 $38,000-54,000 $60,000-90,000 44,000 18,000 0.8 1 0.2 A unit price proposal for modernization and improvement of an existing port facility is shown below. Item Description Unit Unit Price Item Total Quantity (estimated) 1 1 Lump sum 2 3 4 5 6 Removal: Existing Structure Dredging Bulkhead: Fill Bulkhead: Sheet piling Pier: Concrete Piling Pier: Case-in-place Concrete Pier: Appurtenances Utilities: Water/Elec yds yds3 Lineal feet Lineal feet yds3 74,000 34,000 24,000 62,000 18,800 7 8 Lump sum Lump sum 1 1 Bit Total = After reviewing the project and assessing the potential competition, one bidder desires to submit a bid of $6,980,000. Given this bidder's quantity estimates, anticipated construction schedule, and allowable range of unit price as shown in the table which follows, formulate a linear program to maximize the present worth of revenue. Assume the bidder, if successful, will be paid in full at the end of each year for work in place and that a 15% annual interest rate is appropriate for discounting. Bidder's Construction Schedule Year 1 Year 2 Year 3 Item Range of Unit Prices 1 30,000 28,000 9,500 1 2 3 4 5 6 7 8 Quantity (Estimated) 1 (lump sum) 78,000 (yds) 33,500 (yds) 26,000 (ft) 66,000 (ft) 18,000 (yds) 1 (lump sum) 1 (lump sum) 20,000 24,000 26,000 22,000 $240,000-280,000 $8.00-9.20 9.00-12.00 $13.00-15.00 $$48.00-66.00 $78.00-94.00 $38,000-54,000 $60,000-90,000 44,000 18,000 0.8 1 0.2