Assignment:
Malone Inc. has identified five potential new processes; however, the firm is constrained by its available budget and human resources. Each process is expected to generate a return (given by the net present value) but requires a fixed amount of cash and personnel. Because the resources are limited, all processes cannot be selected. Processes cannot be partially completed; thus, either the process must be undertaken completely or not at all. The data are given in the table below. If a process is selected, it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table. Which projects should they undertake?
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Use the following information to set up a linear programming model in Solver and use it to reach a solution. In the body of your post, be sure to write out the equations you used to build the model in addition to posting a solution.