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XYZ Management is deciding to expand in Quezon, Cebu or Davao, or can be combination of 2 areas. If the company will expand in Quezon,

XYZ Management is deciding to expand in Quezon, Cebu or Davao, or can be combination of 2 areas. If the company will expand in Quezon, the capital needed is 1 million pesos; if the company will expand in Cebu, the capital needed is 3 million pesos; and if the company will expand in Davao, the capital needed is 2.3 million pesos. After expansion, the net present value of Quezon branch will be 1.9 million pesos, Cebu branch will be 4 million pesos, and Davao branch will be 2.8 million pesos. Where should XYZ Management expand to increase the companys net present value with a limited capital of 3.5 million pesos?
Where should XYZ Management expand to maximize its net present value?
After expansion, how much is the capital spent?
After the expansion, how many branches will the company expand to?
What is the constraint in this case?
This problem is an example of what?

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