Question
You have a list of ten independent projects with their NPV and the initial outlays.Among these,you have to choose any number of projects that can
You have a list of ten independent projects with their NPV and the initial outlays.Among these,you have to choose any number of projects that can maximize the total NPV while meeting the initial budget constraint. a)Formulate the following Capital Budgeting problem as a linear programming problem. b)If two of the projects are mutually exhaustive,how shall you adjust the above model? c) If three of the projects cannot be picked up together,all at a time,how will you incorporate this constraint in the model? d)If one of the projects cannot produce any outcome unless another project,how shall you change the model?
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