Note: This Problem Requires the Use of a Linear Programming $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$

question 1

Multiple Choice

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
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} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the expected net present value of the optimal solution?

• A) 210
• B) 220
• C) 235
• D) 310
• E) 435

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Definitions:

Intelligence Test Scores

Quantitative measures obtained from assessments designed to evaluate intellectual capabilities and potential.

Correlation

A measure of the relationship between two variables, indicating how one may predict or relate to the other.

Working Memory

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Control of Attention

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