A company has $1,000,000 to invest in new
Question # 00441531
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Updated on: 12/12/2016 02:16 AM Due on: 12/12/2016
A company has $1,000,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.
[Deterministic Scenario] The following table summarizes the initial cost and revenue potential for each of the projects:
| Project | Initial Cost | Expected Revenue |
| 1 | $500,000 | $1,500,000 |
| 2 | $500,000 | $1,500,000 |
| 3 | $500,000 | $1,800,000 |
| 4 | $500,000 | $1,800,000 |
a.) Formulate an LP model for this problem with the objective of maximizing total profit
b.) Implement your model in a spreadsheet and solve it
c.) What is the optimal solution?
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Solution: A company has $1,000,000 to invest in new