Company is considering three major projects

Assignment Help Financial Management

Reference no: EM131852747

A company is considering three major projects labeled A, B and C. Each of the projects can be selected for completion in any of the next 3 years or may be omitted from the portfolio entirely. The total return for each project based on the year it is selected is given in Table. This return captures all relevant cash flows, including investments. It also includes the effects of the time value of money

The investment required for each project occurs entirely within the year for which it is selected. The goal is to maximize the total return. This problem has the following constraints. No more than two projects can be selected in any year. Total investment in any year cannot exceed 9. Project B cannot be selected if project A is not selected, but project A can still be selected without project B (think, for example, in A being the development of some technology and B being the utilization of it). Project A and B cannot be selected in the same year. A project can be selected at most once. Formulate and solve the problem as an IP.

Return for project (thousand $)

Year A B C

1 7 6 4

2 5 4 4

3 8 7 5

Investment (thousand $) 5 3 5

Reference no: EM131852747

Questions Cloud

Write a summary of the steps for improving diversity : Add an executive summary of the steps for improving organizational diversity to the report being submitted to the ELC.

Psychologist selects two random samples : The psychologist wants this difference to be within 5 msec of the difference between the sample means. If the psychologist selects two random samples

Midsemester warning notices affect performance : A psychologist wonders whether midsemester warning notices affect performance. She decides to select a sample of delinquent students

Compare the performance of students : Professor Smith wishes to compare the performance of students in her class on multiple-choice and fill-in-the-blank exams.

Company is considering three major projects : A company is considering three major projects labeled A, B and C. It also includes the effects of the time value of money

Self-fulfilling prophecies : Self-fulfilling prophecies refer to beliefs or expectations that can bring about enhanced (or impaired) performance. Research by Eden (2003)

Why you think the business is using the pricing strategy : Discuss why you think the business is using the pricing strategy that you did.Match each business with the pricing strategy that you believe the business is use

Would it have changed the outcome of the test : In our example problem in suppose we had used X for the text messaging condition and Y for the no distractions condition.

Increase in net worth of your brokerage account : What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes

User Account

All Pages