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Problem 3. (25points) California Manufacturing Co. considers building new factory in Los Angeles or San Francisco or San Diego, or any combination of the above
Problem 3. (25points) California Manufacturing Co. considers building new factory in Los Angeles or San Francisco or San Diego, or any combination of the above cities. The company also plans to build one new warehouse whose location is restricted to the city where factory is being built. The company president's staff estimates that the net present value (NPV) of building a factory (warehouse) in each location and the amount of capital required to do this is presented in the below table. (Please note that building a warehouse would be considered only if a factory also is being built there.) The objective still is to find the feasible combination of investments that maximizes the total net present value, given that the amount of capital available for these investments is $10 million. Capital available: $10 million Formulate a BIP model for this
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