Stockco2
Stockco is considering four investments.
Investment 1 will yield a net present value of $16,000,
investment 2 will yield a net present value of $22,000,
investment 3 will yield a net present value of $12,000, and
investment 4 will yield a net present value of $8,000.
Cash outflows required are
$5000 for investment 1,
$7000 for investment 2,
$4000 for investment 3, and
$3000 for investment 1.
Stockco's investment advisor places the following restrictions on
their investments.
- Stockco can invest in at most two investments.
- If Stockco invests in investment 2, they must also invest in
investment 1.
- If Stockco invests in investment 2, they cannot invest in
investment 4.
At present $14,000 is available for investment. Formulate an IP that
tells Stockco which investments to choose.