For each problem below, hand in an algebra formulation, and also solve using Excel and Solver, handing in the standard printouts.  For Q3, you should also draw a project network.
 

Q1. (30 points)  Problem 24 on page 34 of the course pack (Capsule Drug).
 

Q2. (30 points)  Your firm has up to $300,000 to invest in three projects.  For each dollar invested now, you expect to receive payments as follows:

Any cash not occupied with these projects should earn interest at the following rates:

You have the constraint that for each of the four years, at most 70% of your income from the projects can come from any single project.  Determine how to maximize the amount of cash you have on hand at the end of year 4.  (Note:  on your spreadsheet, you can set this problem up similarly to the INVEST problem we did in class. However, to enforce the blending constraints (which are slightly different), you will need to have a separate cell for the income from each project in each year, rather than a single SUMPRODUCT formula for each year.)  You may download the data for the problem here.
 

Q3. (20 points)  Problem 19 on pages 103-104 of the course pack (setting up a rock concert).  (Note: draw the network in the style shown in class, not the somewhat different style of the figure on page 103.)
 

Q4. (20 points)  In Q3, assume that you have the option of shortening activities shown in the table below/overleaf:  You have a budget of $855 to shorten the preparation time for the concert as much as possible.  How quickly can you complete the project?  (Note: while this problem resembles the "crashing" problem we did in class, the objective function and constraints are not quite the same -- in class, we had to find the cheapest way to finish by a given deadline.  Here, we must find the fastest way to finish within a given budget.)