تم الحل ✓
categoryإدارة أعمال
schoolبكالوريوس
event_available2026-07-14
السؤال
Transcribed Image Text:
1. The board of directors of General Wheels Co. is considering seven large capital invest-
ments. Each investment can be made only once. These investments differ in the estimated
long-run profit (net present value) that they will generate as well as in the amount of
capital required, as shown by the following table (in units of millions of dollars): The total
Investment Opportunity
1234567
Estimated profit 17
Capital required
43
10
10
15
19
7
13
9
28
34
48
17
32 23
amount of capital available for these investments is $100 million. Investment opportuni-
ties 1 and 2 are mutually exclusive, and so are 3 and 4. Furthermore, neither 3 nor 4
can be undertaken unless one of the first two opportunities is undertaken. There are no
such restrictions on investment opportunities 5, 6, and 7. The objective is to select the
combination of capital investments that will maximize the total estimated long-run profit
(net present value). Formulate this problem as an IP.
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