Question: A consulting firm has four projects to consider. Each project will require time (in days) in the next three months according to the table below.

Revenue from each project is also shown. There is 15 days’ time available in the first month, 22 days’ time available in the second month, and 24 days’ time available in the third month to do these projects. The management wants to select at most 3 projects. If project A is selected, then project B must also be selected. The objective of the firm is to maximize the total revenue.

Formulate a capital budgeting problem for the above situation by determining

(a) The decision variables

(b) The objective function

(c) All the constraints.

Note: Do NOT solve the problem after formulating.