Use this information to answer the following questions.
A decision maker is provided with 5 different potential projects and must determine which projects to choose.The projects require different amounts of capital and different expected net present values (NPV)over the next three years.

-Refer to the information above.Determine which set of projects should be selected in order to achieve the maximum net present value if the following two conditions must also be met:
a)If project 1 is selected,then project 2 must be selected,and vice versa.
b)Since projects 4 and 5 require outsourcing various operations,the decision maker wants at most one of these projects to be included in the solution and not both.

Question

Use this information to answer the following questions.
A decision maker is provided with 5 different potential projects and must determine which projects to choose.The projects require different amounts of capital and different expected net present values (NPV)over the next three years.
 
-Refer to the information above.Determine which set of projects should be selected in order to achieve the maximum net present value if the following two conditions must also be met:
a)If project 1 is selected,then project 2 must be selected,and vice versa.
b)Since projects 4 and 5 require outsourcing various operations,the decision maker wants at most one of these projects to be included in the solution and not both.

Quizplus · Accepted Answer

The Answer of Use this information to answer the following questions.
A decision maker is provided with 5 different potential projects and must determine which projects to choose.The projects require different amounts of capital and different expected net present values (NPV)over the next three years.
 
-Refer to the information above.Determine which set of projects should be selected in order to achieve the maximum net present value if the following two conditions must also be met:
a)If project 1 is selected,then project 2 must be selected,and vice versa.
b)Since projects 4 and 5 require outsourcing various operations,the decision maker wants at most one of these projects to be included in the solution and not both.

Use This Information to Answer the Following Questions