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A company has $1,000,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.
[Deterministic Scenario] The following table summarizes the initial cost and revenue potential for each of the projects:
Project
Initial Cost
Expected Revenue
1
$500,000
$1,500,000
2
3
$1,800,000
4
a.) Formulate an LP model for this problem with the objective of maximizing total profit
b.) Implement your model in a spreadsheet and solve it
c.) What is the optimal solution?
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