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A firms faces several alternatives for investments. The budget of the firm is K. Assume, there are N investment alternatives. An alternative n requires an
A firms faces several alternatives for investments. The budget of the firm is K. Assume, there are N investment alternatives. An alternative n requires an investment of an and leads to a return of On: What are the alternatives where the firm should invest such that maximizing the gains? Given the problem above, if the number of alternatives is 5, then model the following constraints: 1. The firm cannot invest in all the alternatives. 2. The firm must choose at least one of the alternatives. 3. If firm decides to invest in alternative 3, then the firm cannot invest in alternative 1. 4. Alternative 4 can be taken only if alternative 2 is chosen. 5. Alternatives 1 and 5 are mutually exclusive. A firms faces several alternatives for investments. The budget of the firm is K. Assume, there are N investment alternatives. An alternative n requires an investment of an and leads to a return of On: What are the alternatives where the firm should invest such that maximizing the gains? Given the problem above, if the number of alternatives is 5, then model the following constraints: 1. The firm cannot invest in all the alternatives. 2. The firm must choose at least one of the alternatives. 3. If firm decides to invest in alternative 3, then the firm cannot invest in alternative 1. 4. Alternative 4 can be taken only if alternative 2 is chosen. 5. Alternatives 1 and 5 are mutually exclusive
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