Multiple Choice
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 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5}
Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential project has a different cost) ?
A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Correct Answer:

Verified
Correct Answer:
Verified
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