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A developer of video game software has seven proposals for new games. Unfortunately, the company cannot develop all the proposals because its budget for new projects is limited to $950,000, and it has only 20 programmers to assign to new projects. The financial requirements, returns, and the number of programmers required by each project are summarized in the following table. Projects 2 and 6 require specialized programming knowledge that only one of the programmers has. Both of these projects cannot be selected because the programmer with the necessary skills can be assigned to only one of the projects. (Note: All dollar amounts represent thousands.)
Project, Programmers, Required Capital, Required Estimated NPV
1 7 $250 $650
2 6 $175 $550
3 9 $300 $600
4 5 $150 $450
5 6 $145 $375
6 4 $160 $525
7 8 $325 $750
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