hw
kimnta
Fox Enterprises is considering six projects for possible construction over the next 4 years. Fox can undertake any of the projects partially or completely. A partial undertaking of a project will prorate both the return and cash outlays proportionately. The expected (present value) returns and cash outlays for the projects are given in the following table.
Cash Outlay ($1000)
Project | Year 1 | Year 2 | Year 3 | Year 4 | Return ($1000) |
1 | 10.5 | 14.4 | 2.2 | 2.4 | 32.40 |
2 | 8.3 | 12.6 | 9.5 | 3.1 | 35.80 |
3 | 10.2 | 14.2 | 5.6 | 4.2 | 17.75 |
4 | 7.2 | 10.5 | 7.5 | 5.0 | 14.80 |
5 | 12.3 | 10.1 | 8.3 | 6.3 | 18.20 |
6 | 9.2 | 7.8 | 6.9 | 5.1 | 12.35 |
Available funds ($1000) | 60.0 | 70.0 | 35.0 | 20.0 |
|
Formulate the problem as a linear program (identify your x values, state the objective function, identify your constraints), and determine the optimal project mix that maximizes the total return using Excel Solver. Ignore the time value of money.
Hint: Your fifth constraint should be: where
. This relates to project completion.
11 years ago
5
Purchase the answer to view it
fox_enterprises_is_considering_six_projects.xls
- CJA 484 Week 3 Discussion Question
- Legal = Law expert
- BUS 518 Assignment 1 - A Peaceful Evacuation- Building a Multi-Project Battalion by Leading Upward (New)
- ISCOM 305 Week 4 Team Assignment - Parker Earth Moving Company Consulting Session 3
- PSY 210 week 6 The Sexual Response Cycle
- MUST BE AN AMERICAN WITH PROPER USE OF ENGLISH LANGUAGE AND GRAMMAR!!!
- Find the half-life to the nearest tenth of a year of a radioactive substance that decays from 65mg to 17.55mg...
- Case Study - IT strategy
- Information Technology
- math calc 2
