Use the data shown below to answer the following question(s).
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value)but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X i = 1 if process i is selected,and 0 otherwise.
-Using Solver,the total return for the optimal solution is ________.
A)$300,000
B)$245,000
C)$170,000
D)$445,000

Question

Use the data shown below to answer the following question(s).
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value)but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X i = 1 if process i is selected,and 0 otherwise. 
-Using Solver,the total return for the optimal solution is ________.
A)$300,000 
B)$245,000 
C)$170,000 
D)$445,000

Quizplus · Accepted Answer

The total return for the optimal solution is $300,000. This is because the Solver will find the combination of investments that will maximize the total return, and the optimal solution is the one that results in the highest total return.

Use the Data Shown Below to Answer the Following Question(s)