Use the Data Shown Below to Answer the Following Question(s)

question 87

Multiple Choice

Use the data shown below to answer the following question(s) .
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value) but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise.
-What is the objective function?

• A)Maximize $27,500X₁ + $41,500X₂ + $27,500X₃ + $70,000 X₄ + $70,000 X₅
• B)Maximize $5,000X₁ + $3,000X₂ + $2,000 X₃ + $5,000 X₄ + $3,000 X₅
• C)Maximize $90,000X₁ + $110,000X₂ + $75,000 X₃ + $70,000 X₄ + $100,000 X₅
• D)Maximize $180,000X₁ + $220,000X₂ + $150,000X₃ + $140,000X₄ + $200,000X₅

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