GGV Corp Is Considering the Expansion of Its Networking and Communication

question 3

Essay

GGV Corp. is considering the expansion of its networking and communication equipment production. Four projects are being considered. Projects A and B are mutually exclusive, and Projects C and D are mutually exclusive. Project C cannot be selected unless Project A or B has been selected. Project D is an optional add- on of Project A. The company's board of directors has approved $2 million for this expansion. In addition, because of limited personnel, only 27,000 labor hours can be committed to the expansion. Formulate the resource allocation problem as a linear programming model. Use a MARR of 7.2% per year.
$$4$$ $$\begin{array} { | l | l | l | l | l | } \hline \text { Initial costs } \$ & 410,000 & 560,000 & 595,000 & 635,000 \\\hline \begin{array} { l } \text { Net annual } \\\text { revenue, } \$\end{array} & 54,000 & 69,000 & 72,500 & 77,500 \\\hline \begin{array} { l } \text { Man- hours } \\\text { requirement } \\\text { hours }\end{array} & 11,000 & 12,500 & 12,950 & 13,250 \\\hline \text { Life, years } & 2 & 2 & 2 & 2 \\\hline\end{array}$$

---

Definitions:

Native Language

The first language that a person learns from birth, often spoken in the household or community of the individual.

Chinese

Relating to China, its people, languages, or culture.

Spanish

A Romance language that originated in the Iberian Peninsula and is now a global language spoken by millions as a first or second language.

Incest

Sexual relations between people classified as being too closely related to marry each other.