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Yakima Construction Corporation (YCC) is considering a number of different development projects. The cash outflows that would be required to complete each project are indicated

image text in transcribed Yakima Construction Corporation (YCC) is considering a number of different development projects. The cash outflows that would be required to complete each project are indicated in the table, along with the expected net present value (NPV) of each project (all values in millions of dollars). Each project must be done in full (with the corresponding cash flows for all four years) or not done at all. Furthermore, there are the following additional considerations. Project 1 cannot be done unless Project 2 is also undertaken. Projects 3 and 4 would compete with each other, so they should not both be chosen (i.e., mutually exclusive). Project 5 can be done only if Project 2 is chosen and Project 4 is not. YCC expects to have the following cash available to invest in these projects: $40 million for year 1,$25 million for year 2,$16 million for year 3 , and $12 million for year 4. Any available money not spent in a given year is then available to spend the following year. YCC s policy is to choose their projects so as to maximize their total expected NPV. Formulate this model algebraically as a Binary Integer Programming Problem (BIP). Define your decision variables, objective function, and constraints. DO NOT SOLVE

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