Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company wants to choose among six investments. Investment Option Estimated Net Profit 1 200,000 2 150,000 3 140,000 4 180,000 5 300,000 They have

A company wants to choose among six investments. Investment Option Estimated Net Profit 1 200,000 2 150,000 3 140,000 4 180,000 5 300,000 They have a budget of 5 million dollars and they need to choose at least two options. Additionally at most one of options 3 or 4 must be chosen. How can the last mentioned requirement be captured? Let X1, X2, X3, X4, X5, X6 be binary variables that represent whether each investment will be chosen or not Question 3 options: 


140,000X3 + 180,000X4


 5,000,000 X3 + X4  1 X3  X4 X3 + X4  


2 X3 + X4  2 140,000X3 + 180,000X4  5,000,000 


X3 + X4  1 X3  X4 X3 + X4 = 1

Step by Step Solution

3.44 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Here are three ways to capture the re... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen

6th Edition

0077185536, 978-0077185534

More Books

Students also viewed these Accounting questions