Brooks Development Company faces the following capitol budgeting decision. Six real estate projects are available for investment.

Expenditure required 34

Project 3 Net present value 13 Expenditure required 81

Project 4 Net present value 14 Expenditure required 70

Project 5 Net present value 20 Expenditure required 114

Project 6 Net present value 9 Expenditure required 50

The following conditions limit the investment alternatives:

*At least two of projects 1, 3, 5, and 6 must be undertaken

*If either project 3 or 5 is undertaken, they both must be undertaken

*Project 4 cannot be undertaken unless both projects 1 and 2 are undertaken

*The budget for this investment period is 220 million

Formulate and solve a binary integer program that will enable BDC to identify the projects to invest in to maximize net present value while satisfying all project and budget restrictions. What is the optimal net present value? Which projects will be undertaken? How much of the available budget is unused?