Question

The total amount of money available is $80,000 for investments. Five projects are available:

Project           Investment ($)          Annual Profit ($)

   1                 35,000                   20,000

   2                 22,000                   21,000

   3                 28,000                   45,000

   4                 10,000                   18,000

   5                 23,000                  215,000

Formulate this problem to determine which projects (at most one each) should be selected for investment to maximize total annual profit. Define your decision variables clearly and correctly.

Answer 1