2 15 points Four proposals A B C and D are available for inv

2) (15 points) Four proposals A, B, C, and D are available for investment. Proposals A, B, and D require S1 million each initially and C requires $2 million initially. A total of $3 million is available for investment. Proposals C and D are mutually exclusive. Proposal B is contingent on either Proposal A or Proposal C being funded. Identify all feasible alternatives.

Solution

if A or C happens then only B happens otherwise not

Possible combinations are AB, BC &D

All these combinations not exceeding investment of $3mn

AB has cumulative cost =$2mn;

BC has cumulative cost =$2mn;

D has cumulative cost =$1 mn