The Lotus Point Condo Project will contain both homes and apartments. The site can accommodate up to 10,000 dwelling units. The project must contain a recreation project: either a swimming–tennis complex or a sailboat marina, but not both. If a marina is built, then the number of homes in the project must be at least triple the number of apartments in the project. A marina will cost $1.2 million, and a swimming–tennis complex will cost $2.8 million. The developers believe that each apartment will yield revenues with an NPV of $48,000, and each home will yield revenues with an NPV of $46,000. Each home (or apartment) costs $40,000 to build. Formulate an IP to help Lotus Point maximize profits.
The Lotus Point Condo Project will contain both homes
and apartments. The site can accommodate up to 10,000
dwelling units. The project must contain a recreation project:
either a swimming–tennis complex or a sailboat marina, but
not both. If a marina is built, then the number of homes in
the project must be at least triple the number of apartments
in the project. A marina will cost $1.2 million, and a
swimming–tennis complex will cost $2.8 million. The
developers believe that each apartment will yield revenues
with an
with an NPV of $46,000. Each home (or apartment) costs
$40,000 to build. Formulate an IP to help Lotus Point
maximize profits.
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