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Riker Co Is Considering Which of 4 Different Projects to Undertake

question 87

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Riker Co. is considering which of 4 different projects to undertake in order to maximize its net present value (NPV) . Define Xi 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. Riker Co. is considering which of 4 different projects to undertake in order to maximize its net present value (NPV) . Define X<sub>i</sub> 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.   What is the proper objective function? A)  Max X<sub>1</sub> + X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub> B)  Min 60X<sub>1</sub> + 50X<sub>2</sub> + 40X<sub>3</sub> + 20X<sub>4</sub> C)  Max 60X<sub>1</sub> + 50X<sub>2</sub> + 40X<sub>3</sub> + 20X<sub>4</sub> D)  Max 7X<sub>1</sub> + 10X<sub>2</sub> + 6X<sub>3</sub> + 3X<sub>4</sub> E)  Max 170(X<sub>1</sub> + X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub>)  What is the proper objective function?


Definitions:

Motivated Forgetting

A psychological phenomenon whereby individuals unconsciously block memories of traumatic or disturbing events or information.

Source Amnesia

Faulty memory for how, when, or where information was learned or imagined. (Also called source misattribution.) Source amnesia, along with the misinformation effect, is at the heart of many false memories.

Misinformation Effect

The phenomenon where a person's recall of episodic memories becomes less accurate due to post-event information.

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of previously learned information.

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