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The ABC company is contemplating a number of one-time potential investment opportunities. The following table provides a best estimate of both net revenue and
The ABC company is contemplating a number of one-time potential investment opportunities. The following table provides a best estimate of both net revenue and the projected capital outlay necessary. < < Alternative Projected Net Revenue Projected Capital Outlay 1 < 12 < 28 2 < 7 < 18 < 3 < 10 < 22 < 4 < 13 32 < 50 4 < 11 6 < 70 9 < 60 21 < 16 All figures are in tens of millions of dollars. The total amount of capital ABC has for investment is 80. Alternatives 1 and 2 are mutually exclusive as are 5 and 6. Additionally neither 5 nor 6 can be undertaken unless one of the first two alternatives is undertaken. The objective is to select the alternatives that will maximize the net revenue. All alternatives are binary.
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