Question
The HO Corporation is considering six R&D projects for the next fiscal year. It has allocated P250,000 for research and development projects. All projects must
The HO Corporation is considering six R&D projects for the next fiscal year. It has allocated P250,000 for research and development projects. All projects must be completely funded or not funded at all. Given the expected rate of return for the six projects in the table below, formulate a mathematical model to maximize the return from the R&D projects. Using the Branch & Bound method, determine which projects would be funded and what will be the maximum return.
Project | Rate of Return | Cost |
1 | 20% | P80,000 |
2 | 23% | P50,000 |
3 | 30% | P40,000 |
4 | 15% | P70,000 |
5 | 18% | P80,000 |
6 | 25% | P60,000 |
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