A Company Is Considering Three Alternative Investments From Which To Choose It Will Cost 25 000 To Consider Investment 1 (52.31 KiB) Viewed 50 times
A Company Is Considering Three Alternative Investments From Which To Choose It Will Cost 25 000 To Consider Investment 2 (45.93 KiB) Viewed 50 times
A company is considering three alternative investments from which to choose. It will cost $25,000 to consider investment 1, and $32,000 to consider investment 2, and $29,000 to consider investment 3. The company can only choose 2 out of the 3 investments and it has a budget of $62,000 to spend on these investments. The company has a limitation of 36 resources for these investments, where investment 1 requires 16 resources, investment 2 requires 14 resources and investment 3 requires 19. The NVP on investment 1 is $9000, $7000 for investment 2, and $8000 for investment 3. a Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this problem. Which of the three investments would be undertaken if NPV is maximized?
Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this problem. Which of the three investments would be undertaken if NPV is maximized? [Select ] Maximize 9000 X1 + 7000 X2 + 8000X3 Minimize 32000 X2 + 29000X3 ✓ Minimize 25000 X1 + 32000 X2 + 29000X3 The Objective function Maximize 9000 X1 + 7000 X2 The Optimal solution: X1= [Select) X2= (Select ] X3= [Select ] Profit= $ Select]
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