DD&T, Inc Is Considering the Development of Three New Environmentally Friendly

question 4

Essay

DD&T, Inc. is considering the development of three new environmentally friendly products. One product will be selected from each of the high- end products and the commercial products lines. The company will set aside $2.5 million for this development. If the company's MARR is 8% per year, and all products have the same useful life of 7 years with zero salvage value, formulate the capital allocation problem as a linear programming model. $$\begin{array} { | l | l | c | c | } \hline \text { roduct Line } & \text { Product } & \text { levelopment Cost, \$ } & \begin{array} { l } \text { Estimated Net } \\\text { Annual Revenue, } \$\end{array} \\\hline \text { ommercial } & X 1 & 70,000 & 510,0 \\& && 00 \\\hline & X 2 & 20,000 & 710,0 \\& && 00 \\\hline & X 3 & 45,000 & 810,0 \\& & &00 \\\hline \text { igh - End } & Y 1 & 80,000 & 760,0 \\& & & 00 \\\hline & Y 2 & 30,000 & 860,0 \\& & & 00 \\\hline & Y 3 & 55,000 & 910,0 \\& && 00 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | } \hline \text { Product Line } & \text { Product } & \text { Development Cost, \$ } & \begin{array} { c } \text { Estimated Net } \\\text { Annual Revenue, } \$\end{array} \\\hline \text { Commercial } & X 1 & 270,000 & 510,000 \\\hline & X 2 & 420,000 & 710,000 \\\hline & X 3 & 445,000 & 810,000 \\\hline \text { High- End } & Y 1 & 480,000 & 760,000 \\\hline & Y 2 & 730,000 & 860,000 \\\hline & Y 3 & 755,000 & 910,000 \\\hline\end{array}$$ $\begin{array}{|c|c|c|c|}\hline \text { Product Line } & \text { Product } & \text { Development Cost, \$} & \begin{array}{c}\text { Estimated Net } \\\text { AnnualRevenue, } \$\end{array} \\\hline \text { Commercial } & \mathrm{X} 1 & 270,000 & 510,000 \\\hline & \mathrm{X}_{2} & 420,000 & 710,000 \\\hline & \mathrm{X}_{3} & 445,000 & 810,000 \\\hline \text { High- End } & \mathrm{Y1} & 480,000 & 760,000 \\\hline & \mathrm{Y2} & 730,000 & 860,000 \\\hline & \mathrm{Y3} & 755,000 & 910,000 \\\hline\end{array}$

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Definitions:

Strands Unwind

Refers to the process of the double helix structure of DNA opening up into single strands during replication or transcription.

Hydroxyl Group

A chemical functional group consisting of an oxygen atom bonded to a hydrogen atom (-OH), commonly found in alcohols and many other organic compounds.

Phosphate Group

An important chemical group consisting of a phosphorus atom bonded to four oxygen atoms, involved in energy transfer and storage within cells through compounds like ATP.

DNA Polymerase

An enzyme that synthesizes DNA molecules from deoxyribonucleotides, the building blocks of DNA.