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

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Definitions:

Mass Production

A manufacturing process that produces large quantities of standardized products, utilizing assembly lines and automation to achieve efficiency and uniformity.

Labor Unions

Organizations formed by workers to advocate for their collective interests in wages, benefits, working conditions, and labor policies.

Company Unions

Labor organizations that are controlled by the employer rather than independently run by the workers, often seen as a way to prevent independent unionization.

Worker Controlled Unions

Labor organizations that are directly governed and operated by their members, ensuring their interests and concerns are central to union activities.