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Exercise 11.2 Consider the following investment projects where, for each project, you are given its NPV as well as the cash outflow required during each
Exercise 11.2 Consider the following investment projects where, for each project, you are given its NPV as well as the cash outflow required during each year (in million dollars) NPV Year 1 Year 2 Year 3 Year 4 Project 130 Project 230 Project 320 Project 415 Project 515 Project 615 Project 715 Project 8 24 Project 918 Project 1018 12 12 3 10 12 13 10 10 No partial investment is allowed in any of these projects. The firm has i) Formulate an integer linear progr (ii) Formulate the following conditions as linear constraints Exactly one of Projects 4, 5, 6, 7 must be invested in. If Project 1 is invested in, then Project 2 cannot be invested in. If Project 3 is invested in, then Project 4 must also be invested in. If Project 8 is invested in, then either Project 9 or Project 10 must 18 million dollars available for investment each year am to determine the best investment plan and solve with SOLVER. also be invested in. If either Project 1 or Project 2 is invested in, then neither Project 8 nor Project 9 can be invested in
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