Chapter 9 Self-Study Questions

1.
AlternativeP1P2P3Meaning
A0000Do nothing
A1100P1 only
A2010P2 only
A3110P1 and P2
A4001P3 only
A5101P1 and P3
A6011P2 and P3
A7111All
2.Alternatives A2 and A6 are infeasible because they contain proposal P2 without its contingent proposal, P1. Alternatives A6 and A7 are infeasible because they contain mutually exclusive proposals (P2 and P3). Alternative A7 is also infeasible because of budget constraints.
AlternativeP1P2P3Meaning 
A0000Do nothing 
A1100P1 only 
A2010P2 onlyNo P1
A3110P1 and P2Budget
A4001P3 only 
A5101P1 and P3 
A6011P2 and P3No P1, exclusive
A7111AllExclusive, budget

The feasible alternatives are A0, A1, A4, and A5.

3.
 A0A1A4A5
Investment$0$800,000$400,000$1,200,000
Annual revenue$0$450,000$300,000$750,000
Annual ...

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