Riker Co Is Considering Which of 4 Different Projects to Undertake

question 84

Multiple Choice

Riker Co. is considering which of 4 different projects to undertake in order to maximize its net present value (NPV) . Define X_i as a binary variable that equals 1 if project i is undertaken and 0 otherwise, for i = 1, 2, 3, 4. The NPV and required capital (in millions) for each project are listed below. Which of the following represents the constraint(s) stating that project 1 must be undertaken and at least one of the other projects must be undertaken?

• A) X₁ + X₂ ≤ 1, and X₁ + X₃ ≤ 1, and X₁ + X₄ ≤ 1
• B) X₁ ≥1, and X₂ + X₃ + X₄ ≥ 1
• C) X₁ + X₂ ≥ 1, and X₁ + X₃ ≥ 1, and X₁ + X₄ ≥ 1
• D) X₁ ≥ 1, and X₂ + X₃ + X₄ ≤ 3
• E) X₁ + X₂ + X₃ + X₄ ≥= 2

Understand the concept and importance of cash discounts in financial management.

Describe the 5 Cs of credit and their significance in credit assessment.

Define collection policy and its role in credit management.

Explain the purpose and use of an aging schedule in managing receivables.

---

Definitions:

Emerging Sense

The developing perception or realization of new insights, feelings, or states of awareness in an individual.

Single Mothers

Women who raise their children without a partner, typically bearing sole responsibility for parental duties.

Expressing Anger

The act of conveying feelings of annoyance, displeasure, or hostility towards something or someone, typically through verbal communication or outward behavior.

Child Abuse

Physical, sexual, emotional maltreatment or neglect of a child, especially by a parent or caregiver.