Top-sider Boat Shuttle Services Inc. is in the process of increasing its total fleet capacity from 60 passengers to 120 passengers. It currently has 10 boats that have a capacity of 6 passengers each. For any of its existing boats, the company has the option of (a) keeping it and introducing minor repairs at a cost of P 40K, (b) keeping it and upgrading it for a cost of P 200K, and (c) selling it for a price of about P 160K. The company is considering two boat models for its new acquisitions: (a) a model of the same size of the current model it owns, and (b) a bigger model with a capacity of 10 passengers. Relevant pieces of information are as follows:

Option	Capital Expense	Capital Gain	Annual Operating Cost	Annual Gross Revenue	Passenger Capacity	Minimum Order Quantity
Keep old boat w/ minor repairs	40		220	300	6
Keep old boat w/ upgrade	200		150	300	6
Sell old boat		160	-
Buy new boat similar to existing boats	400		80	300	6	5 units
Buy a new boat with bigger capacity	800		150	600	10	3 units

Conditions that have to be met include the following:

• Total fleet capacity should be at least 120 passengers;
• New fleet size should be at least 16 boats;
• The number of new boats should at least be 50% of the total new fleet size;
• Minimum order quantity for new small boats is 5 while that for big boats is 3;
• The expected lifetime of the new boats and the old boats, after repairs & upgrades, is 4 years;
• Capital expenses or capital gains are amortized over the expected life of 4 years;
• Annual contribution from each option is computed as Gross revenue plus amortized capital gains less annual operating costs less amortized capital expense;
• Buying one or more of the new boats similar to existing boats would entail the establishment of a new support facility that will require P 500 K/year to maintain;
• Buying one or more of the new boats with bigger capacity would entail the establishment of a new support facility that will require P 800 K/year to maintain;

Formulate an ILP Model that will maximize the annual operating profit from the operations of the fleet. (Note: All monetary values are assumed in thousands already - no need to put "K" in the coefficients.)