A company has $1,000,000 to invest in new R&D projects. The company wants to determine what set of projects should be selected.
[Deterministic Scenario] The following table summarizes the initial cost and revenue potential for each of the projects:
ProjectInitial CostExpected Revenue1$500,000$1,500,0002$500,000$1,500,0003$500,000$1,800,0004$500,000$1,800,000
a.) Formulate an LP model for this problem with the objective of maximizing total profit
b.) Implement your model in a spreadsheet and solve it
c.) What is the optimal solution?