Answered You can hire a professional tutor to get the answer.
Alternative Limited warehouse expansion Extensive warehouse expansion Test market new product Advertising campaign Basic research Purchase new
Spencer Enterprises must choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows:
a. Develop and solve an integer programming model for maximizing the net present value.
b. Assume that only one of the warehouse expansion projects can be implemented. Modify your model of part (a).
c. Suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation of part (b) to reflect this new situation.
Alternative Limited warehouse expansionExtensive warehouse expansionTest market new productAdvertising campaign Basic research Purchase new equipment Capital funds available Net PresentValue ($) 4,0006,00010,5004,0008,0003,000 Capital Requirements ($) Year 1 3,0002,5006,0002,0005,0001 ,000 10,500 Year 2 1,0003,5004,0001,5001,000 500 7,000 Year 3 4,0003,5005,0001 ,8004,000 900 8,750