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?
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.