The following questions refer to a capital budgeting problem with six projects represented by 0-1 variables x1,

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The following questions refer to a capital budgeting problem with six projects represented by 0-1 variables x1, x2, x3, x4, x5, and x6:
a. Write a constraint modeling a situation in which two of the projects 1, 3, 5, and 6 must be undertaken.
b. Write a constraint modeling a situation in which, if projects 3 and 5 must be undertaken, they must be undertaken simultaneously.
c. Write a constraint modeling a situation in which project 1 or 4 must be undertaken, but not both.
d. Write constraints modeling a situation where project 4 cannot be undertaken unless projects 1 and 3 also are undertaken.
e. Revise the requirement in part (d) to accommodate the case in which, when projects 1 and 3 are undertaken, project 4 also must be undertaken.

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...
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Quantitative Methods For Business

ISBN: 148

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

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