question 15

Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2 projects. Projects 2 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Which projects should be selected? What is the total net present value of these projects