Capital budgeting problem with six projects


The following questions refer to a capital budgeting problem with six projects represented by binary variables x1, x2, x3, x4, x5, and x6.

a. Write a constraint modeling a situation in which two of the projects 1, 3, 5, and 6 must be undertaken.

b. Write a constraint modeling a situation in which, if project 3 or 5 is undertaken, they must both be undertaken.

c. Write a constraint modeling a situation in which project 1 or 4 must be undertaken, but not both.

d. Write constraints modeling a situation where project 4 cannot be undertaken unless projects 1 and 3 also are undertaken.

e. Revise the requirement in part d to accommodate the case in which, when projects 1 and 3 are undertaken, project 4 also must be undertaken.

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Basic Statistics: Capital budgeting problem with six projects
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