Solved

Riker Co Is Considering Which of 4 Different Projects to Undertake

Question 87

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. Riker Co. is considering which of 4 different projects to undertake in order to maximize its net present value (NPV) . Define X<sub>i</sub> 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. What is the proper objective function? A) Max X<sub>1</sub> + X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub> B) Min 60X<sub>1</sub> + 50X<sub>2</sub> + 40X<sub>3</sub> + 20X<sub>4</sub> C) Max 60X<sub>1</sub> + 50X<sub>2</sub> + 40X<sub>3</sub> + 20X<sub>4</sub> D) Max 7X<sub>1</sub> + 10X<sub>2</sub> + 6X<sub>3</sub> + 3X<sub>4</sub> E) Max 170(X<sub>1</sub> + X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub>) What is the proper objective function?


A) Max X1 + X2 + X3 + X4
B) Min 60X1 + 50X2 + 40X3 + 20X4
C) Max 60X1 + 50X2 + 40X3 + 20X4
D) Max 7X1 + 10X2 + 6X3 + 3X4
E) Max 170(X1 + X2 + X3 + X4)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q82: For the following constraints, which point is

Q83: Two methods of solving linear programming problems

Q84: Riker Co. is considering which of 4

Q85: What is the region that satisfies all

Q86: Explain how to use the iso-profit line

Q88: The property manager of a city government

Q89: Linear programming is an appropriate problem-solving technique

Q90: The feasible region in the diagram below

Q91: What is the simplex method?

Q92: In linear programming, if there are three