Exercise 1 Investment company is considering 6 investments. The cash required for each investment as well as the net present value (NPV) of the investment is given in the table. The cash available for the investments is $14,000. The company wants to maximize its total NPV. What is the optimal strategy? An investment can be selected or not. One cannot select a fraction of an investment. Investment 1 Cash required ($1000s) NPV added 16 ($1000s) 12 19 a) Formulate a binary program to find the optimal selection of investments. Now some more conditions are added from the owners of the company: 1. 2. 3. 4. Exactly 3 stocks are selected If stock 2 is selected, then so is stock 1 If stock 1 is selected, then stock 3 is not selected. Either stock 4 is selected or stock 5 is selected, but not both. b) Modify the model to take the new conditions into account