Capital Requirements (S) Alternative Number Net Present Value ($) - Alternative Year 1 Year Year 2 3,000 3.500 1.000 1 4,000 Listed warehouse engano 2 5,500 2,500 3,500 3,500 Extensive warehouse expansion Test market new product 10,000 6.000 4,000 5,000 3.500 2,000 1,500 4 1,000 Advertising campaign Basic research Purchase new equipment 7,500 5,000 1,000 4,000 2.500 1,000 son 6 900 10,500 7.000 8,750 Capital funds available ,5,6. (a) Develop an integer programming model for maximizng the ret present value (108) (Lex - fleuvestment atomotive / is selected LE Year 1 Year 2 Year According to this model, what's the maximum net present value (in $}? $ (b) Aasume that only one of the warehouse expansion projects can be implemented. Modify your model from part (a). In addition to the constraints from part (), what additional constraint should be added to the Intuger programming moden According to this model, what is the maximum net present value in $)? $ (4) Suppose that if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation from part (b) to reflect this new stuation In addition to the constraints from part () and part (b), what additional constraint should be added to the integer programming model? According to this model, what is the maximum net present value (5)? Capital Requirements (S) Alternative Number Net Present Value ($) - Alternative Year 1 Year Year 2 3,000 3.500 1.000 1 4,000 Listed warehouse engano 2 5,500 2,500 3,500 3,500 Extensive warehouse expansion Test market new product 10,000 6.000 4,000 5,000 3.500 2,000 1,500 4 1,000 Advertising campaign Basic research Purchase new equipment 7,500 5,000 1,000 4,000 2.500 1,000 son 6 900 10,500 7.000 8,750 Capital funds available ,5,6. (a) Develop an integer programming model for maximizng the ret present value (108) (Lex - fleuvestment atomotive / is selected LE Year 1 Year 2 Year According to this model, what's the maximum net present value (in $}? $ (b) Aasume that only one of the warehouse expansion projects can be implemented. Modify your model from part (a). In addition to the constraints from part (), what additional constraint should be added to the Intuger programming moden According to this model, what is the maximum net present value in $)? $ (4) Suppose that if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation from part (b) to reflect this new stuation In addition to the constraints from part () and part (b), what additional constraint should be added to the integer programming model? According to this model, what is the maximum net present value
