Stockco is considering four investments. Investment 1 will yield a net present value (NPV) of $16, 000, investment 2, an NPV of $22, 000; investment 3, an NPV of $12,000; and investment 4, an NPV of S8,000. Each investment requires a certain cash outflow at the present time: investment 1, 55,000, investment 2, $7, 000, investment 3, $4, 000, and investment 4, $3,000. Currently, $14,000 is available for investment. Formulate an IP whose solution will tell Stockco how to maximize the NPV obtained from investments 1-4

Stockco is considering four investments. Investment 1 will yield a net present value (NPV) of $16, 000, investment 2, an NPV of $22, 000; investment 3, an NPV of $12,000; and investment 4, an NPV of S8,000. Each investment requires a certain cash outflow at the present time: investment 1, 55,000, investment 2, $7, 000, investment 3, $4, 000, and investment 4, $3,000. Currently, $14,000 is available for investment. Formulate an IP whose solution will tell Stockco how to maximize the NPV obtained from investments 1-4

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 34P

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