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 currentlyavailable capital.Max 100x1 + 120x2 + 90x3 + 135x4s.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}{1, if projecteſ 1, if project j is selectedxj=Which constraint ensures that the firm will not spend more capital than it has available (assume that each potentialproject has a different cost)? Multiple ChoiceOOOConstraint 5Constraint 4Constraint 3Constraint 1Constraint 2

LPP constraints: The constraints or caps on the total quantity of a certain resource needed to…

Answered: Which constraint ensures that the firm…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1. Suppose we have a project with the following cash flows and required return. What is the NPV and IRR of the project? t 0 $ Cash flow (250,000) 1 234567 Return: NPV: IRR: 41,000 48,000 63,000 79,000 88,000 64,000 41,000 12% 2. Given the information of Stock A, please figure out the expected return, variance, and standard deviation of the stock. (6) (5) Squared (1) State of (2) (3) (4) Probability of Return if State Product Return Deviation from Expected Return Return Deviation from Expected (7) Product Economy State Occurs (2) × (3) (3) - E(R) Return (2) x (6) Boom 0.2 0.24 Normal 0.5 0.11 Recovery 0.2 0.02 Recession 0.1 -0.013 Expected return= Variance = The standard deviation is the square root of the variance, so the standard deviation is: Standard deviation:
Market Company’s policy is to have 30% of the next month's sales on hand at the end of the current month. Projected sales for August, September, and October are 26,000 units, 21,000 units, and 31,000 units, respectively. How many units must be purchased in September?
Baking dog treats in her kitchen has been a simple process for Emma to manage. She has two ovens, one sink, a refrigerator, and enough room for two people to work at the same time. However, when Emma moves her business out of her home, she will have a commercial kitchen that can accommodate as many as six people working simultaneously. She had never thought of her business as “production” until the real estate agent who showed her the space asked how many production workers she needs to accommodate. At that point, Emma realized she would be running a production system. Even worse, she realized that she had never even visited a manufacturing facility or set foot on a real production floor. How will she ever manage this process?
A dependent project is one whose acceptance or rejection is based on: (a) Its rate of return with respect to the MARR (b) The amount of capital available for investment (c) A decision about another project (d) The amount receivable in salvage value of the existing asset
As the new owner of a local ice cream store located in a strip mall adjacent to a university campus, you are contemplating how to organize your business – whether to make your ice cream in-house or outsource its production to Fan Milk Ghana Ltd., whose brand is in most of the local supermarkets; and how much authority to delegate to the two assistant store managers and employees working at the counter and cash register. You plan to sell 20 flavors of ice cream. REQUIRED: Since you do not plan to be in the store during all the hours it is open, what specific decision-marketing authority would you delegate to the two assistant managers?
b) A management consulting firm has a backlog of 4 contracts. Work on these contracts must be started immediately. Three project leaders are available for assignment to the contracts. Because of the varying work experience of the project leaders, the profit (in R'000) to consulting firm will vary based on the assignment shown in Table 2. The unassigned contract can be completed by subcontracting the work to an outside consultant. Table 2: Profits Contract Project Leader 1 2 3 4 A 13 10 9 11 B 15 17 13 20 с 6 8 11 7 Find the optimal assignment and give the total assignment profit.
A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $3 million. Probability of rezoning: 0.30. If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,100 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an…
If workers contribute to their group’s investments and decide on these investments, workers at different stages of their careers may want different types of capital, for example a durable building versus a temporary one. a. How might the age distribution of the workers make the building they choose to build too temporary or too durable? How can a building be too durable? b. There are also young and old shareholders. Why isn’t the choice of the building’s durability also a problem if they or an elected management makes the decision on it?
An R&D project in a company is working on a project to make a sample product to be displayed at an international fair in Las Vegas held in 18 months. With additional equipments, the company can make sure they make the sample in 18 months. Develop an optimal crashing time-cost solution to help the company in this project to be ready on time for the fair. C, 4 B, 3 А,5 H,7 D, 3 F, 9 G, 2 Cost per month Activity Normal Time to crash 9,000 4,000 6,000 4,000 2,000 5,000 2,000 9,000 A В C 4 E F 9. G 2 H 7 Duration Path Activity to crash (months) АВСН ADEH FGH
Provide a circumstance under which the expected monetary value is appropriate for decision making.
5. Common resources versus private goods Spring is here, and Cho and her dad would like to go fishing for the weekend in New Hampshire. Cho could either go to the river in town where anyone can fish without a permit, or she could drive up to a pond located on her family's property PRIVATE PROPERTY in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the private pond are considered and whereas the fish in the river are and In other words, the fish in the private pond are an example of and the fish in the river are an example of Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the pond believing that there are more fish there. All fishermen will choose to fish in the river because of the limited access to the pond. Anyone can fish in the river, and one person's fishing activity decreases the…
There are 3 different fire alarm systems in the store. System A detects fire with a probabilityof 0.6 and costs $40, the B detects fire with a probability of 0.91 and costs $100, the Cdetects fire with a probability of 0.8 and costs $60. Which option is better: to set one systemB or two systems A and C?

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Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential project has a different cost)?