An agribusiness firm is considering funding four possible projects for the future and has a total budget of $18 million. Suppose that the four projects have the following expected costs and returns:
|
Project
|
Expected cost ($ million)
|
Expected returns ($ million)
|
|
1
|
10
|
15
|
|
2
|
14
|
18
|
|
3
|
8
|
13
|
|
4
|
7
|
7
|
Solve this as an integer programming (IP) problem, where the objective is to maximize total expected return from these projects. Assume that each project is either funded (1) or not funded (0).