Finance Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Do not provide Excel Screet shot rather use tool tableAnswer completely as well as the amount of investment required to undertake theproject.Estimated profit(millions)Capital required(millions)1E*Development Project342$1 $1.8 $ 1.66 1210$0.845$1.48The owners of the firm, Dave Peterson and Ron Johnson, haveraised $20 million of investment capital for these projects. Daveand Ron now want to select the combination of projects thatwill maximize their total estimated long-run profit (net presentvalue) without investing more than $20 million.a. Formulate a BIP model in algebraic form for thisproblem.b. Formulate and solve this model on a spreadsheet. 7.5. A real-estate development firm, Peterson and Johnson,is considering five possible development projects. Using units ofmillions of dollars, the following table shows the estimated long-run profit (net present value) that each project would generate,

Here, for the given Q, First, I would formulate the BIP model in algebraic form, then, I would…

Answered: a. Formulate a BIP model in algebraic…

Business

Operations Management

a. Formulate a BIP model in algebraic form for this problem. b. Formulate and solve this model on a spreadsheet.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Consider a small Oil production firm with 5 competing oil production projects, A - E. The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project. You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million. Production Project A B C D E Estimated Profit (millions) 25 20 19 28 21 Capital Required (millions) 11 8 14 19 13 Formulate a Binary Integer Programming (BIP) model on a spreadsheet. Solver the model using Solver.
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