Introduction: Assume that you are the project coordinator for WolfCo Power and that you have been directed to appropriate funding for four projects. The projects have already been designed and bids from contractors have been accepted. The present total budget amount that you have available is $125,000. It is necessary to construct each of the four projects but it is not essential to accept all of the alternates associated with each of the project bids. The alternates are arranged such that each more expensive alternate includes all the alternates above it. Your task, as project coordinator, is to recommend the project alternates that will most effectively utilize the overall project budget, i.e., to use as much of the funding as you can without exceeding the budget while using the lowest marginal cost to benefit ratio at each step of the process. The matrix of projects, project costs, and project benefits is below. All values are in thousands of US Dollars: AC/AB Project Options Matrix B AC/AB 30 Project 2 0 2.1 Nothing 3 5 ? 2.2 Cheap 9 ? 2.3 Moderate 1320 ? 2.4 Expensive Project 1 1.1 Nothing 1.2 Cheap 1.3 Moderate 1.4 Expensive 0 CB 45 0 0 2 20 1745 1855 ? | ? 8 0 Project 3 3.1 Nothing 3.2 Cheap 3.3 Moderate 3.4 Expensive VOXI 1 ? Project 4 4.1 Nothing 4.2 Cheap 4.3 Moderate 4.4 Expensive 30 0 0 3 10 13 15 17 | 20 ? 3 7 ? ? ? 4 9 ? Required: Fill in the details on the incomplete project matrices presented above. An additional matrix with other project information is presented on sheet 2. Make additional copies of sheet 2 as needed and complete each section as required to indicate the best way to utilize the project available funding. It should be fairly obvious that there are more projects than there is money. Be sure to complete all details on all duplicated sheets so that the reasons for making each decision Project Options Matrix CB AC/AB B AC/AB Project 1 1.1 Nothing 1.2 Cheap 1.3 Moderate 1.4 Expensive 30 0 0 35 5 9 1320 Project 2 2.1 Nothing 2.2 Cheap 2.3 Moderate 2.4 Expensive 45 0 0 2 20 17 45 18 55 8 OIX Project 3 3.1 Nothing 3.2 Cheap 3.3 Moderate 3.4 Expensive 0 0 1 2 3 7 49 Project 4 4.1 Nothing 4.2 Cheap 4.3 Moderate 4.4 Expensive 30 0 0 3 10 13 15 17 20 AC Total Cost Project Description (Number. Phase) 1 Base Projects (1.0, 2.0, 3.0, & 4.0) 2 113 3 4 5 6 7 AC/AB (Marginal Cost/Benefit): P = 2 p2 = 0 P3 = 5 Project 1 has 2 options Project 2 is rejected (maybe out of budget ....) Project 3 has 5 options In general, P = [2, 0,5, ...Pn] Project vector = [P1, P2, P3, ... Pn] Maximize: Benefit (P) P = [P1, P2, ... ,Pn] Subject to: Cost (P) = Budget (C/B);