If,in the Optimal Tableau of a Linear Programming Problem,an Artificial

question 87

Multiple Choice

If,in the optimal tableau of a linear programming problem,an artificial variable is present in the solution mix,this implies

• A)infeasibility.
• B)unboundedness.
• C)degeneracy.
• D)alternate optimal solutions.
• E)a finite optimal solution.

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Definitions:

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to the present day, taking into account the time value of money.

Cost of Capital

The average rate a firm pays its investors for the use of their funds adjusted for taxes and administrativecosts. Also called the WACC forweighted average cost of capital.Distinguish from the costs of individualcapital components that are the adjustedrates paid on debt, preferred stock, andcommon equity. The component costs are(weighted) averaged to get the WACC

Shareholder Wealth

The overall value and financial health perceived by the shareholders of a company, often judged by the price of the company's stock and dividends paid.

Exceeds Cost

This refers to when the expenses associated with a project or operation surpass the initially estimated costs.