A company has $1,000,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.
[Deterministic Scenario] The following table summarizes the initial cost and revenue potential for each of the projects:
|
Project
|
Initial Cost
|
Expected Revenue
|
|
1
|
$500,000
|
$1,500,000
|
|
2
|
$500,000
|
$1,500,000
|
|
3
|
$500,000
|
$1,800,000
|
|
4
|
$500,000
|
$1,800,000
|
a.) Formulate an LP model for this problem with the objective of maximizing total profit
b.) Implement your model in a spreadsheet and solve it
c.) What is the optimal solution?