Use the Table Below to Answer the Following Questions) by Invoking

question 14

Multiple Choice

Use the table below to answer the following questions) by invoking the binary constraints on the variables using the standard Solver.
Below is the spreadsheet for a project selection model: $\begin{array}{|l|l|l|l|l|l|l|l|}\hline & \text { A } & \mathrm{B} & \mathrm{C}&D&E&F&G \\\hline 1 & \begin{array}{l}\text { Project Selection } \\\text { Model }\end{array} & & \\\hline 2 & & & \\\hline 3 & \text { Data } & & \\\hline 4 & & & & && & \text { Available } \\& &\text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } & \text { Project 5 } & \text { Resources } \\\hline &\text { Expected Return } & \$ 160,000 & \$ 200,000 & \$ 125,000 & \$ 150,000 & \$ 225,000 & \\5 &\text { NPV) } & \\\hline 6& \begin{array}{l}\text { Cash } \\\text { requirements }\end{array} & \$ 45,000 & \$ 70,000 & \$ 28,000 & \$ 52,000 & \$ 65,000 & \$ 175,000 \\\hline 7 & \text { Personnel } & & & & & & \\&\text { requirements } & 7 & 4 & 2 & 6 & 4 & 10\\\hline 8 & \\\hline 9 & \text { Model } \\\hline 10 & \\\hline & \text { Project selection } \\11 & \text { decisions } \\\hline 12 & \text { Cash Used } \\\hline 13 & \text { Personnel Used } \\\hline 14 & \text { Return } \\\hline\end{array}$
-What is the amount of cash used for Project 5?

• A) $ 65,000
• B) $ 117,000
• C) $ 13,000
• D) $ 110,000

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Definitions:

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is distorted.

Equilibrium

An economic situation in which no individual would be better off doing something different.

Perfectly Inelastic

A situation where the demand or supply for a good is completely unresponsive to changes in price.

Deadweight Loss

A loss of economic efficiency that can occur when the optimal allocation of resources is not achieved, often due to market failures or government interventions.