For four independent projects, the investment limit is $350, and the following project…

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.

ProjectInitial Investment, $
1250
2150
375
4235

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.

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