The Following Questions Refer to an Advertisement Budgeting Problem Involving

question 49

Essay

The following questions refer to an advertisement budgeting problem involving printing of five magazines represented by binary variables M1, M2, M3, M4, and M5.a. Write a constraint modeling a situation in which two of the magazines M1, M4, and M5 must be printed.
b. Write a constraint modeling a situation in which, if M2 or M3 is printed, they must both be printed.
c. Write a constraint modeling a situation in which magazine M1 or M3 must be printed, but not both.
d. Write constraints modeling a situation where M2 cannot be printed unless magazine M3 and M5 also are printed.
e. Write a constraint in which not more than 4 of all the five magazines have to be printed.
f. Write a constraint in which exactly five of the magazines are printed.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholders' wealth maximization.

Time Value of Money

A financial principle that posits money available now is worth more than the same amount in the future due to its potential earning capacity.

Hurdle Rate

A financial metric indicating the minimum return on investment required for a project or investment to be considered acceptable.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows from the investment equal to zero.