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SOLVER | 387 18-2

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SOLVER | 387 18-2. Seven new projects are being proposed for our division. Each would require investments over the next three years, but each ultimately would result in a positive return on our investment Project A B ? D E F G Expenditures in $ Millions Year 1 Year 2 Year 3 5 8 4 7 9 3 8 4 3 9 2 7 4 3 2 3 6 8 9 Return in $ Millions 20 36 28 20 18 12 40 - The CEO has decided that we have a maximum of $25 million each year to invest. Just on the basis of the numbers, which combination of projects should we invest in so that the sum of the returns is maximized? Set up a worksheet and use Solver to come up with a solution. You should set up the worksheet so there is a cell for each project that contains either a 1 (meaning we invest in the project) or a 0 (meaning we do not invest in the project). Solver should find the combination of l's and O's that maximizes the sum of the returns subject to the constraints. • In the Text Box, tell the CEO which projects the company should invest in to maximize the return.

Swifty Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

From the information above, determine the amount of Swifty Company inventory.