A Firm Has Prepared the Following Binary Integer Program to Evaluate

question 42

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 mutually exclusive relationship?

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

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Definitions:

Goal

A specific, measurable, and attainable outcome or objective that a person or organization strives to achieve.

Superiority Complex

A psychological defense mechanism in which an individual exaggerates their own abilities and worth in order to overcome feelings of inferiority.

Idealized Self

A version of oneself that represents the standards of perfection, success, and attractiveness set by oneself or by societal expectations, often unattainable and leading to dissatisfaction.

Bowlby and Ainsworth

Refers to John Bowlby and Mary Ainsworth, psychologists known for their work in developing attachment theory.