GGV Corp. is considering expansion of its communication and the networking equipment production. 4 projects are being considered. Projects A and B are mutually limited, and Projects C and D are mutually limited. Project C cannot be selected unless Project A or B has been selected. Project D is an optional add-on of Project A. The company's board of directors has accepted $2 million for this expansion. In addition, because of the limited personnel, only 27,000 labor hours can be committed to expansion. Create the resource allocation
problem as a linear programming model. Use a MARR of 7.2% per year.
|
Project A
|
Project B
|
Project C
|
Project D
|
|
Initial costs, $
|
410,000
|
560,000
|
595,000
|
635,000
|
|
Net annual
revenue, $
|
54,000
|
69,000
|
72,500
|
77,500
|
|
Man-hours
requirement,
hours
|
11,000
|
12,500
|
12,950
|
13,250
|
|
Life, years
|
2
|
2
|
2
|
2
|