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The board of directors of General Wheels Company is considering seven large capital investments. Each investment can be made only once. These investments differ in

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The board of directors of General Wheels Company is considering seven large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount of capital required, as shown by the following table. Click here for the Excel Data File The total amount of capital avallable for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive, and so are 3 and 4 . Furthermore, nelther 3 nor 4 can be undertaken unless one of the first two opportunities is undertaken. There are no such restrictions on investment opportunities 5,6 , and 7 . The objective is to select the combination of capital investments that will maximize the total estimated long-run profit (net present value). Formulate and solve a BiP model on a spreadsheet for this problem. o. Determine the combination of capital investments that will maximize profit Note: Leove no cells blank. Enter " O " wherever required. Formulate and solve a BIP model on a spreadsheet for this problem. o. Determine the combination of capital investments that will maximize profit. Note: Leove no cells blank. Enter " O " wherever required. b. Determine the total profit. E13 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline A & B & C & D & E & F & G & H & 1 & j & K & L & M \\ \hline 8 & \multicolumn{12}{|c|}{ Irvestment Opportunity } \\ \hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & & & & & \\ \hline Estimated Profit & 17 & 10 & 15 & 19 & 7 & 13 & 9 & & & & & \\ \hline \multirow[t]{2}{*}{ (\$million) } & \multirow{2}{*}{\multicolumn{6}{|c|}{ Capital Required for investment Opportunity (\$million) }} & & & & Capital & & \\ \hline & & & & & & & & & & Avalable & & \\ \hline Capital & 43 & 28 & 34 & 48 & 17 & 32 & 23 & & & 100 & & \\ \hline \end{tabular}

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