A capital budgeting problem involving the selection of possible projects under budget constraints is solved by which of the following?
A)mixed-integer programming
B)0-1 integer programming
C)goal programming
D)nonlinear programming

Question

Quizplus · Accepted Answer

The problem of selecting projects under budget constraints can be modeled as a 0-1 integer program, where the decision variable represents whether a project is selected or not. The objective function is to maximize the total value of the selected projects, subject to the budget constraint. The decision variables are binary, which means they can only take the values of 0 (not selected) or 1 (selected). Mixed-integer programming can also be used, but it involves more complex algorithms and is not necessary for this problem. Goal programming and nonlinear programming are not appropriate for this type of problem.

A Capital Budgeting Problem Involving the Selection of Possible Projects