A company is considering five investments. The net present value (NPV) and the initial cash outflow required
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A company is considering five investments. The net present value (NPV) and the initial cash outflow required for each of them is given below
The company has a total of Rs 48,000 to invest. Further, it is required that (i) the company should not make more than 3 investments.
(ii) the company should invest in investment II if it invests in investment Ill.
(iii) if the company invests in investment IV, then it should not invest in investment V.
Formulate this as an integer programming problem, taking the objective function as maximisation of NPV.
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