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:

Pure Tone

A pure tone is a sound with a steady sinusoidal waveform, characterized by a single frequency without any harmonics or overtones, often used in audiometry to test hearing.

Sub-waves

Secondary wave patterns that form part of a larger wave motion in physical systems, often observed in physics and engineering.

Transmitting Substance

A chemical messenger that transmits signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Sound Waves

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.