In a capital budgeting problem, if either project 1 or project 2 is selected, then project 5 cannot be selected. Which of the alternatives listed below correctly models this situation?
A) x1 + x2 + x5 ≤ 1
B) x1 + x2 + x5 ≥1
C) x1 + x5 ≤ 1, x2 + x5 ≤ 1
D) x1 - x5 ≤ 1, x2 - x5 ≤ 1

Question

Quizplus · Accepted Answer

The constraint x1 + x5 ≤ 1 represents that if project 1 is selected, then project 5 cannot be selected. Similarly, the constraint x2 + x5 ≤ 1 represents that if project 2 is selected, then project 5 cannot be selected. Together, they model the situation where either project 1 or 2 can be selected, but not both along with project 5.

In a Capital Budgeting Problem, If Either Project 1 or Project