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Summarizes the initial cost and revenue potential

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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

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