Project 1 2 3 4

Year 0 (900) (50) (700) (1,200)

Year 1 (800) 500 (400) 350
Year 2 500 (500) 350 390
Year 3 600 90 490 580
Year 4 720 160 450 620
Year 5 840 - 510 -
NPV @ 10% 250 (50) 218 300
Binary Variable 1 1 1 -

Constraints
Year 0 (1,950) >= (2,000)
Year 1 (1,650) >= (2,000)
Year 2 1,050 >= (2,000)
Year 3 1,780 >= (2,000)
Year 4 1,830 >= (2,000)
Year 5 1,500 >= (2,000)
5
(300)
(950)
700
600
500
150
300
1 Maximum NPV 718
Microsoft Excel 16.52 Answer Report
Worksheet: [Book1.xlsx]Sheet1
Report Created: 30/08/21 2:12:22 PM
Result: Solver found an integer solution within tolerance. All constraints are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 1635.914 Seconds.
Iterations: 2 Subproblems: 16
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$J$10 Maximum NPV 790 718

Variable Cells
Cell Name Original Value Final Value Integer
$C$10 Binary Variable 0.9 1.0 Binary
$D$10 Binary Variable - 1.0 Binary
$E$10 Binary Variable 1.0 1.0 Binary
$F$10 Binary Variable 0.2 - Binary
$G$10 Binary Variable 1.0 1.0 Binary

Constraints
Cell Name Cell Value Formula Status Slack
$C$13 Year 0 (1,950) $C$13>=$E$13 Not Binding 50
$C$14 Year 1 (1,650) $C$14>=$E$14 Not Binding 350
$C$15 Year 2 1,050 $C$15>=$E$15 Not Binding 3,050
$C$16 Year 3 1,780 $C$16>=$E$16 Not Binding 3,780
$C$17 Year 4 1,830 $C$17>=$E$17 Not Binding 3,830
$C$18 Year 5 1,500 $C$18>=$E$18 Not Binding 3,500
$C$10:$G$10=Binary
ume NonNegative
 Box Type
1 2 3 4 5
Size (cubic feet) 33 30 26 24 19
Demand 400 300 500 700 200
Decision Variable 700 - 500 700 800

Fixed Cost 1,000 1,000 1,000 1,000 1,000

Binary Variable 1 - 1 1 1

Constraints Linking Constraints

Box Type 1 700 >= 400 Box Type 1
Box Type 2 700 >= 700 Box Type 2
Box Type 3 1,200 >= 1,200 Box Type 3
Box Type 4 1,900 >= 1,900 Box Type 4
Box Type 5 2,700 >= 2,100 Box Type 5
Box Type 6 2,700 >= 2,500 Box Type 6
Box Type 7 2,700 >= 2,700 Box Type 7

Total Cost 72,100

 6 7
18 17
400 200
- -

1,000 1,000
- -

nking Constraints
(2,000) <= -
- <= -
(1,500) <= -
(800) <= -
- <= -
- <= -
- <= -
Microsoft Excel 16.52 Answer Report
Worksheet: [Book1.xlsx]Sheet3
Report Created: 30/08/21 2:50:09 PM
Result: Solver found an integer solution within tolerance. All constraints are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 2375.015 Seconds.
Iterations: 4 Subproblems: 14
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 1E-06, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Min)

Cell Name Original Value Final Value
$C$20 Total Cost Box Type 0 72100

Variable Cells
Cell Name Original Value Final Value Integer
$C$6 Decision Variable Box Type 0 700 Integer
$D$6 Decision Variable 0 0 Integer
$E$6 Decision Variable 0 500 Integer
$F$6 Decision Variable 0 700 Integer
$G$6 Decision Variable 0 800 Integer
$H$6 Decision Variable 0 0 Integer
$I$6 Decision Variable 0 0 Integer
$C$9 Binary Variable Box Type 0 1 Binary
$D$9 Binary Variable 0 0 Binary
$E$9 Binary Variable 0 1 Binary
$F$9 Binary Variable 0 1 Binary
$G$9 Binary Variable 0 1 Binary
$H$9 Binary Variable 0 0 Binary
$I$9 Binary Variable 0 0 Binary

Constraints
Cell Name Cell Value Formula Status
$C$12 Box Type 1 Box Type 700 $C$12>=$E$12 Not Binding
$C$13 Box Type 2 Box Type 700 $C$13>=$E$13 Binding
$C$14 Box Type 3 Box Type 1200 $C$14>=$E$14 Binding
$C$15 Box Type 4 Box Type 1900 $C$15>=$E$15 Binding
$C$16 Box Type 5 Box Type 2700 $C$16>=$E$16 Not Binding
$C$17 Box Type 6 Box Type 2700 $C$17>=$E$17 Not Binding
$C$18 Box Type 7 Box Type 2700 $C$18>=$E$18 Binding
$H$12 Box Type 1 -2000 $H$12<=$J$12 Not Binding
$H$13 Box Type 2 0 $H$13<=$J$13 Binding
$H$14 Box Type 3 -1500 $H$14<=$J$14 Not Binding
$H$15 Box Type 4 -800 $H$15<=$J$15 Not Binding
$H$16 Box Type 5 0 $H$16<=$J$16 Binding
$H$17 Box Type 6 0 $H$17<=$J$17 Binding
$H$18 Box Type 7 0 $H$18<=$J$18 Binding
$C$6:$I$6=Integer
$C$9:$I$9=Binary
me NonNegative

Slack
300
0
0
0
 600
200
0
2000
0
1500
800
0
0
0