Determine the optimal project mix

Assignment Help Operation Management
Reference no: EM13859297

Fox Enterprises is considering six projects for possible construction over the next 4 years. Fox can undertake any of the projects partially or completely. A partial undertaking of a project will prorate both the return and cash outlays proportionately. The expected (present value) returns and cash outlays for the projects are given in the following

Cash Outlay ($1000)

Project

Year 1

Year 2

Year 3

Year 4

Return ($1000)

1

10.5

14.4

2.2

2.4

32.40

2

8.3

12.6

9.5

3.1

35.80

3

10.2

14.2

5.6

4.2

17.75

4

7.2

10.5

7.5

5.0

14.80

5

12.3

10.1

8.3

6.3

18.20

6

9.2

7.8

6.9

5.1

12.35

Available funds ($1000)

60.0

70.0

35.0

20.0

 

Formulate the problem as a linear program (identify your x values, state the objective function, identify your constraints), and determine the optimal project mix that maximizes the total return using Excel Solver. Ignore the time value of money.

Reference no: EM13859297

Questions Cloud

What is the relationship between legal and ethical issues? : What is the relationship between legal and ethical issues?
Create a histogram of the daily commute times : Create a histogram of the daily commute times. Find the most representative average daily commute time across this distribution.
Create a plan to hire an employee for a position : You should create a plan to hire an employee for a position within your organization to support a recent change. In this plan, you should include the hiring criteria you will use to determine the right person for the job.
What are the critical issues surrounding the newly released : What are the critical issues surrounding the newly released tape?
Determine the optimal project mix : Formulate the problem as a linear program (identify your x values, state the objective function, identify your constraints), and determine the optimal project mix that maximizes the total return using Excel Solver. Ignore the time value of money
Eds building company has the production function q : Eds building company has the production function q=20L - L^2. L is the quantity of labor Ed employs. 1. Find marginal production of labor and the average product of Labor  2. For what value of L is MPl greater than 0? For what values is it diminish..
Endogenous verses exogenous growth theoriesin : Research Project 2: Endogenous Verses Exogenous Growth TheoriesIn neoclassical growth models, the sources of growth, is exogenous usually "technology". Such theoretical models hence are able to describe how an economy grows, but not why it grows. To ..
What are the advantages of investing in the common stock : What are the advantages of investing in the common stock rather than the corporate bonds of a company? Compare the certainty of returns for a bond with those for a common stock.
Local government is considering imposing a revenue : The local government is considering imposing a revenue-neutral (tax revenue would be the same in eithercase) 6.25% tax on either tanning beds or soft drinks. Tanning has an elasticity of demand = ?d = -0.9,while soft drinks' ?d = -0.7. Assume the sup..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd