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Medule 11 Assignment (Camm DETRIC Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net

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Medule 11 Assignment (Camm DETRIC Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows Capital Requirements (5) Alternative Number Alternative Net Present Year 1 Value (5) Year 2 Year 3 1 Limited warehouse expansion 4,500 3,000 1,000 4,000 2 Extensive warehouse expansion 5,500 2,500 3,500 3,500 . Test market new product 10,000 6,000 4,000 5,000 4 Advertising campaign 4,500 2,000 1,500 1,800 5 6 Basic research Purchase new equipment 8,500 5,000 1,000 4,000 3,500 1,000 500 900 Capital funds available 10,500 7,000 0,750 (a) Develop an integer programming model for maximizing the net present value (in s). (Let x,- (1 If investment alternative/is selected 0 otherwise Max S.L. Year 1 Year 2 Year 3 According to this model, what is the maximum net present value (in $)? uded from nart (a). forw - 1, 2, 3, 4, 5, 6.)

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