Question
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 2 projects. Projects 1 and 4 cannot both be selected together. Formulate the problem as a linear program and determine the optimal solution. Project 1 Cost $230,000 Net Present Value $630,000 2 $280,000 $400,000 3 $290,000 $760,000 4 $205,000 $620,000 5 $270,000 $460,000 Which projects should be selected? Project 1 will Project 2 will Project 3 will ed Project 4 will Project 5 will What is the total net present value of these projects? Total net present value 59 $
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Get StartedRecommended Textbook for
Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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