Kloos Industries Has Projected the Availability of Capital Over Each

question 14

Essay

Kloos Industries has projected the availability of capital over each of the next three years to be $850,000, $1,000,000, and $1,200,000, respectively. It is considering four options for the disposition of the capital:
(1)
Research and development of a promising new product
(2)
Plant expansion
(3)
Modernization of its current facilities
(4)
Investment in a valuable piece of nearby real estate
​
Monies not invested in these projects in a given year will NOT be available for following year's investment in the projects. The expected benefits three years hence from each of the four projects and the yearly capital outlays of the four options are summarized in the table below in $1,000,000's.
In addition, Kloos has decided to undertake exactly two of the projects, and if plant expansion is selected, it will also modernize its current facilities. ​
Formulate and solve this problem as a binary programming problem.

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Definitions:

Monozygotic

Refers to twins that are genetically identical, originating from a single fertilized egg that splits into two.

Dizygotic

Referring to twins that are born from two different eggs fertilized by two different sperm cells, resulting in siblings that are genetically as similar as any other brothers or sisters.

Canalized

A term referring to the limitation of the expression of genetic variability due to genetic or environmental influences, resulting in a trait that is shaped to follow a predictable pattern regardless of variations.

Genetic-Environment Correlations

The interaction between an individual's genetic makeup and their surrounding environment, influencing traits and behaviors.