(b) Solve the model formulated in part (a). What is the optimal net present value (in millions of dollars)?millionWhich projects will be undertaken? (Enter your answer as a comma separated list of numbers. Use 1 for project 1, 2for project 2, 3 for project 3, 4 for project 4, 5 for project 5, and 6 for project 6.)How much of the budget is unused (in millions of dollars)?million Brooks Development Corporation (BDC) faces the following capital budgeting decision. Six real estate projects are availablefor investment. The net present value and expenditures required for each project (in millions of dollars) are as follows.Project12 3 4 5 6Net Present Value ($ millions)$18$8 $16 $17 $23 $12Expenditure Required ($ millions) $92 $36 $83 $72 $116 $52There are conditions that limit the investment alternatives:The budget for this investment period is $220 million.(a) Formulate a binary integer program that will enable BDC to find the projects to invest in to maximize net present[1 if project iis undertaken forvalue, while satisfying all project restrictions and not exceeding the budget. (Let x, = { otherwise/= 1, 2, 3, 4, 5, 6. Give your objective function in millions of dollars.MaxAt least two of projects 1, 3, 5, and 6 must be undertaken.• If either project 3 or 5 is undertaken, they must both be undertaken.• Project 4 cannot be undertaken unless both projects 1 and 3 also are undertaken.s.t.constraint on projects 1, 3, 5, and 6constraint on projects 3 and 5constraint on projects 1 and 4constraint on projects 3 and 4budget constraint

Given, Brooks development corporation has the following capital budgeting decisions. Project 1 2…

Answered: (b) Solve the model formulated in part…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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