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Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below.
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least two projects. If project 1 is chosen then project 2 cannot be selected. Formulate the problem as a linear program and determine the optimal solution. Which projects should be selected? Net Present Value Notes Project Cost 12345 $ 250,000 $ 500,000 $500,000 $750,000 $290,000 $333,000 $650,000 $ 400,000 $750,000 $600,000 Project 1 and project 3 Project 3 and project 5 Project 2 and project 3 Project 1 and project 5 Project 1 and project 2 Cannot be selected if 2 is selected Cannot be selected if 1 is selected
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