Integer programming p6-40, p6-44

Capital budgeting

Note: All cash amounts are in $millions.

Cash outflows in various years, NPV of projects
	Project 1	Project 2	Project 3	Project 4	Project 5	Project 6	Project 7	Project 8	Project 9	Project 10	Project 11	Project 12
Year 1	$1	$3	$4	$6	$5	$4	$2	$0	$1	$3	$9	$8
Year 2	$3	$4	$4	$5	$1	$5	$3	$0	$1	$2	$2	$7
Year 3	$4	$2	$3	$3	$2	$2	$1	$3	$4	$4	$4	$1
Year 4	$1	$1	$2	$2	$3	$5	$4	$6	$8	$1	$1	$1
Year 5	$1	$2	$1	$3	$8	$5	$6	$7	$3	$6	$1	$1
NPV	$20	$25	$30	$35	$40	$42	$31	$33	$35	$37	$38	$39

Selected projects (1 if selected, 0 if not)
	Project 1	Project 2	Project 3	Project 4	Project 5	Project 6	Project 7	Project 8	Project 9	Project 10	Project 11	Project 12


Budget constraints
	Outflow		Budget
Year 1
Year 2
Year 3
Year 4
Year 5

Total NPV






QUESTION: You are given a group of possible investment projects for your company's capital. For each project, ou are given the NPV the project would add to the firm,
as well as the cash outflow required by each project during each year. Given the information above, determine the ivnestments that maximize the firm's NPV. The firm
has $30 million available during each of the next five years. All numbers are in millions of dollars.

Integer programming p6-40, p6-44

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