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Hummer Hummer
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6 years ago
Data Corp 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.
 
  Project Net Present Value Capital Required
  1 40 9
  2 80 13
  3 10 3
  4 90 8
 
  Which of the following represents the constraint stating that project 3 can be undertaken only if project 2 is undertaken?
  A) X2 + X3  1
  B) X2 - X3  0
  C) X3 - X2  0
  D) X2 - X3  1
  E) X3 - X2  1
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mich3093mich3093
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6 years ago
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Hummer Author
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#2
6 years ago
Just confirmed the same answer from a friend, thanks
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