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real-estate development firm, Peterson & Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long-run

real-estate development firm, Peterson & Johnson, is considering five possible development projects. Using units of millions of dollars, the following table shows the estimated long-run profit (net present value) that each project would generate, as well as the amount of investment required to undertake the project. Development Project Project 1 Project 2 Project 3 Project 4 Project 5 Estimated Profit (millions) $ 1.00 $ 1.80 $ 1.60 $ 0.80 $ 1.40 Capital required (millions) 6 12 10 4 8 The owners of the firm, Dave Peterson & Ron Johnson have raised $20 million of investment capital for these projects. Dave and Ron now want to select the combination of projects that will maximize their total estimated long-run profit (net present value) without investing more than 20 million. Formulate and solve this model on a spreadsheet. Please show all formulas and what you insert into the solver in Excel. I am unsure on the formulas.

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