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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
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 100x + 120x2 + 90x3 + 135x4 St. 150x1 + 200x2 + 225x3 + 175x4 $ 500 (Constraint 1) x1 + x2 + x3 + x4 2 2 (Constraint 2) x2 + x4 S 1 {Constraint 3} x2 + x3 2 1 (Constraint 4) X1 X4 [Constraint 5) Ij = 1, if project jis selected 0, otherwise Which of the constraints enforces a mutually exclusive relationship? Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential project has a different cost)?
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