**Question:**

For four independent projects, the investment limit is $350, and the following project selection restriction applies: project 2 can be selected only if project 3 is selected.

Project | Initial Investment, $ |

1 | 250 |

2 | 150 |

3 | 75 |

4 | 235 |

Determine all the acceptable mutually exclusive bundles from the following. Circle all that apply.

A) DN

B) 1,3,4

C) 1

D) 2,3,4

E) 3

F) 1,2,3

**Answer:**

Options (C) and (E).

Options (B), (D) and (F) are unacceptable since the total required layout of these bundles is higher than the available budget of $350. Note that Options (A) is unclear [“DN”] as to what this signifies.