Riker Cois Considering Which of 4 Different Projects to Undertake in in Order

question 15

Multiple Choice

Riker Co.is considering which of 4 different projects to undertake in order to maximize its net present value (NPV) .Define Xi as a binary variable that equals 1 if project i is undertaken and 0 otherwise,for i = 1,2,3,4.The NPV and required capital (in millions) for each project are listed below.
Which of the following represents the constraint(s) stating that project 1 must be undertaken and at least one of the other projects must be undertaken?

• A)X1 + X2 ≤ 1,and X1 + X3 ≤ 1,and X1 + X4 ≤ 1
• B)X1 ≥1,and X2 + X3 + X4 ≥ 1
• C)X1 + X2 ≥ 1,and X1 + X3 ≥ 1,and X1 + X4 ≥ 1
• D)X1 ≥1,and X2 + X3 + X4 ≤ 3
• E)X1 + X2 + X3 + X4 ≥ 2

---

Definitions:

Production Budget

A financial plan that outlines the expected production levels of a company based on projected sales, inventory policies, and capacity constraints.

Cash Collections

The total amount of money received from customers or clients for goods or services provided.

Sales Estimate

A projection of the revenue a company expects to generate from sales over a specific period, often used as a basis for budgeting and planning.

Preparation Sequencing

The organized planning and arrangement of tasks or activities to achieve a desired goal or outcome.