The first part of the Question,the scenario is posted on a word page below:

more of the projects in such a way that the net return on the chosen projects will be a maximised.

To facilitate solving of this problem, the following decision variables are defined:

Let P1 1 if the plant in Alberton should be expanded 0 if not. =

and P2, P3 and P4 are similar for the other three projects. Let Ai = amount invested in year i (i = 1, 2, 3, 4, 5 where 1 corresponds to to the year 2023, 2 to 2024 and so on

Answer the following questions:

a) Stating your assumptions, develop a linear programming (LP) model to maximise net return of the chosen projects. (15 marks)

b) Solve this linear programming (LP) model using SOLVER. (10 marks)

c) Write down the optimal solution (10 marks )

d)Interpret your SOLVER solution within the context of the original business problem. (5 marks)

Use this case to answer the questions that follow: A South African organisation, Nganunu Manufacturing, wants to expand its activities. In the next few years a number of large capital amounts will become untied, and they wish to plough these back into the organisation. The amounts that will become available at the beginning of each year are given in the following table: Four projects are being considered. The capital needed per year for each project (in R1 000) and the present value of the net return (in R1 000) on each project are given in the following table. If a project is selected, it has to be completed as a whole. Amount of money not used can be invested at 12% per annum for a year. Nganunu Manufacturing wants to select one or Use this case to answer the questions that follow: A South African organisation, Nganunu Manufacturing, wants to expand its activities. In the next few years a number of large capital amounts will become untied, and they wish to plough these back into the organisation. The amounts that will become available at the beginning of each year are given in the following table: Four projects are being considered. The capital needed per year for each project (in R1 000) and the present value of the net return (in R1 000) on each project are given in the following table. If a project is selected, it has to be completed as a whole. Amount of money not used can be invested at 12% per annum for a year. Nganunu Manufacturing wants to select one or