Capital Budgeting problem
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Consider a capital budgeting example with 5 projects from which to select. Let x1 = 1 if project a is selected, 0 if not, for a = 1, 2, 3, 4, 5. Projects cost $100, $200, $150, $75, and $300 respectively. The budget is $450. Write the appropriate constraint for the following conditions:
Choose no fewer than 3 projects.
If project 3 is chosen, project 4 must be chosen.
If project 1 is chosen, project 5 must not be chosen.
Write the appropriate constraints for the budget constraint.
No more than 2 of projects 1, 2, and 3 can be chosen.
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Solution Summary
This posting problem provides solution to a capital budgeting problem for selection of projects.
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