Let X₁ and X₂ Be 0-1 Variables Whose Values Indicate $\le$

question 35

Multiple Choice

Let x₁ and x₂ be 0-1 variables whose values indicate whether projects 1 and 2 are not done or are done. Which answer below indicates that project 2 can be done only if project 1 is done?

• A)x₁ + x₂ = 1
• B)x₁ + x₂ = 2
• C)x₁ -x₂ \(\le\) 0
• D)x₁ -x₂ \(\ge\) 0

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Definitions:

Cash

Refers to currency or assets that can rapidly be converted to currency, used by businesses for transactions and considered a current asset on the balance sheet.

Market Rate

The prevailing interest rate available in the marketplace for investments or loans of a similar risk and maturity profile.

Par Value

The face value of a bond or stock, assigned at the time of issuance, representing the minimum amount the security can be sold for.

Semiannual Interest

Interest that is calculated and paid twice a year, often used in the context of bonds and loans.