Five projects are reviewed over a five-year period to evaluate the expected rate of return. The table below shows the expected profits as well as the related annual cost to the project. We want to know that, In a five-year period, choosing which of these projects is cost-effective? Write the desired mathematical model (explain your logic). annual cost Project 4. expected profit 4 4 32 2 4 4. 4 35 4 8. 3 40 4. 2 3 7. 6. 31 15 6. 6. 8. 6. 25 Available credit 65 62 68 70 75 6. 3. 2.
Five projects are reviewed over a five-year period to evaluate the expected rate of return. The table below shows the expected profits as well as the related annual cost to the project. We want to know that, In a five-year period, choosing which of these projects is cost-effective? Write the desired mathematical model (explain your logic). annual cost Project 4. expected profit 4 4 32 2 4 4. 4 35 4 8. 3 40 4. 2 3 7. 6. 31 15 6. 6. 8. 6. 25 Available credit 65 62 68 70 75 6. 3. 2.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section9.4: The Precision Tree Add-in
Problem 9P
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