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

---

Definitions:

Internet Business

A business that operates primarily online, utilizing digital platforms and technologies for selling goods, delivering services, and interacting with customers.

Substantial Business

A business operation of significant size or importance, often involving considerable amounts of capital, employees, or market presence.

Passive Advertising

A marketing strategy that focuses on being present where potential customers are, without direct engagement, relying on visual or ambient methods to generate interest.

Trial Court

The court of first instance where legal disputes are initially heard and decided, often involving testimonies and evidence presentation.