Portfolio Selection: Steve is a recent Marshall graduate who has taken the project management elective....
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Portfolio Selection: Steve is a recent Marshall graduate who has taken the project management elective. After successfully completing his first assignment, his manager asked his help on a project portfolio selection problem. The firm has 10 potential new product development projects and but cannot execute them all because of budget and staff constraints. They have pretty good understanding for the staff requirements, estimated expected values of return and investment for each project (see table below). Steve's manager is sensitive to budget over-runs as his year-end bonus depends partly on this measure. They are constrained with a budget of $4M. Steve should select a project portfolio that maximizes the total profit (return - investment). Assuming there are only 50 staff available, which projects should be selected to achieve Steve's objective
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