A Firm Has Prepared the Following Binary Integer Program to Evaluate

question 25

Multiple Choice

A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints enforces a contingent relationship?

• A) Constraint 1
• B) Constraint 2
• C) Constraint 3
• D) Constraint 4
• E) Constraint 5

Identify how the market perceives and values a corporation, including market capitalization and the factors influencing share prices.

Grasp the implications of a stock split, stock dividend, and the concept of retained earnings in corporate finance.

Understand the regulatory and legal framework surrounding the corporate form of business organization, including the concepts of limited liability and continuous existence.

Understand the process and implications of closing net income or loss to retained earnings or contributed surplus.

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Definitions:

Communication Methods

The ways in which information is conveyed within and outside an organization, including verbal, non-verbal, written, and digital forms.

Emergencies

Sudden, unexpected events that require immediate action, often to prevent a dangerous or unpleasant outcome.

Emotional Contagion

The occurrence in which the emotions and behaviors of one individual directly induce comparable emotions and behaviors in others.

Mimic

To mimic is to imitate or copy someone's actions, speech, or mannerisms, often for learning or adaptation purposes.