Solve the following modifications of the capital budgeting model in Figure 14.40. a. Suppose that at

Question:

Solve the following modifications of the model in Figure 14.40.

a. Suppose that at most two of projects 1 through 5 can be selected.
b. Suppose that if investment 1 is selected, then investment 3 must also be selected.
c. Suppose that at least one of investments 6 and 7 must be selected.
d. Suppose that investment 2 can be selected only if both investments 1 and 3 are selected.

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...