Solution-Summarizes the initial cost and revenue potential

Summarizes the initial cost and revenue potential

Assignment Help Finance Basics

Reference no: EM131332873

A company has $1, 00,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.

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	$500,000	$1,500,000
3	$500,000	$1,800,000
4	$500,000	$1,800,000

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?

Reference no: EM131332873

Questions Cloud

An otherwise identical but levered firm : An unlevered firm has a value of $525 million. An otherwise identical but levered firm has $50 million in debt. Under the MM zero-tax model, what is the value of the levered firm? Enter your answer in millions. For example, an answer of $1.2 million ..

Examine the conversations of two married couples : The narrative dialogues "Home Burial" and "The Death of the Hired Man" examine the conversations of two married couples. In a carefully constructed paper of 1,500-1,750 words, compare and contrast the two poems.

Perfectly efficient market an active strategy mutual fund : In a perfectly efficient market, an active strategy mutual fund that charges a 1% fee has about a 47% chance of beating the index net of fee. In a universe of 5,000 funds, how many funds would you expect to beat the index all but once out of the past..

What is the sellers expected revenue : Find a symmetric equilibrium.- What is the seller's expected revenue?- Which entry fee maximizes the seller's expected revenue?

Summarizes the initial cost and revenue potential : A company has $1, 00,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected. The following table summarizes the initial cost and revenue potential for each of the projects.

Discount stock brokerages impact the internet revolution : How can you compare "tulip mania" from 17th century Holland to the dot.com debacle of the 20th century from a financial point of view? Name and explain three ways in which the Internet revolution changed the lives of ordinary citizens. How did the bi..

What is the sellers expected revenue : Find a symmetric equilibrium.- What is the seller's expected revenue?- Which entry fee maximizes the seller's expected revenue?

Develop an action plan of key events and activities : Develop an action plan of key events and activities that they can undertake over the next 6 months to acquire the knowledge, skills and behaviours identified as requiring development in Section 1.

Dividends to be qualified under current tax laws : A fund has $829 million dollars of assets, $27 million of liabilities, and 13 million shares outstanding. During the year the fund made qualified dividend distributions of $2.8 per share, long term capital gains distributions of $1.9, and short-term ..

User Account

All Pages

Summarizes the initial cost and revenue potential

Reference no: EM131332873

Reference no: EM131332873

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT