A Company Must Invest in Project 1 in Order to Invest

question 75

Multiple Choice

A company must invest in project 1 in order to invest in project 2. Which of the following constraints ensures that project 1 will be chosen if project 2 is invested in?

• A) X₁ + X₂ = 0
• B) X₁ + X₂ = 1
• C) X₁ − X₂ ≥ 0
• D) X₁ − X₂ ≤ 0

---

Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes.

Marginal Tax Rate

The percentage of tax applied to your next dollar of income, indicating the rate at which your last dollar earned is taxed.

Local Property Tax

Local Property Tax is a levy on the value of a property, typically imposed by local government authorities to fund public services.

Payroll Tax

Taxes imposed on employers and employees, typically calculated as a percentage of the salaries that employers pay their staff.