The government of a city is considering to allocate 700 acres of land for development. Investors are invited to submit a project bid for their intended use of the land in a 2-year development period. The overall goal of the city government would be to make the best use of land to achieve the highest total net present value. A budget of $5 billion has been received from the central government to be spent in the first year or else future funding will be jeopardized. The city has an additional $3 billion that also may be spent in the first year. In the second year, the spending in the selected projects must be at least $4 billion and not more than $7 billion. The projects that are being considered with the relevant information on values and costs are expressed in millions. To gain support from the public, it has been decided at least one project must be selected from projects 1,3,6 and 7 . If project 5 is selected, projects 4 or 7 must also be selected to make the best use of the deliverables of project 5 . (a) Formulate this problem as an integer programming model. (A mathematical model with decision variables, objective function and constraints is expected.) (12 marks) (b) Solve the model in (a) with Excel Solver to determine the projects that should be undertaken and the expected total net present value. (15 marks) The government of a city is considering to allocate 700 acres of land for development. Investors are invited to submit a project bid for their intended use of the land in a 2-year development period. The overall goal of the city government would be to make the best use of land to achieve the highest total net present value. A budget of $5 billion has been received from the central government to be spent in the first year or else future funding will be jeopardized. The city has an additional $3 billion that also may be spent in the first year. In the second year, the spending in the selected projects must be at least $4 billion and not more than $7 billion. The projects that are being considered with the relevant information on values and costs are expressed in millions. To gain support from the public, it has been decided at least one project must be selected from projects 1,3,6 and 7 . If project 5 is selected, projects 4 or 7 must also be selected to make the best use of the deliverables of project 5 . (a) Formulate this problem as an integer programming model. (A mathematical model with decision variables, objective function and constraints is expected.) (12 marks) (b) Solve the model in (a) with Excel Solver to determine the projects that should be undertaken and the expected total net present value. (15 marks)