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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

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

5

4

11

6

9

21

7

6

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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