In Order for a Linear Programming Problem to Have Multiple

question 10

Multiple Choice

In order for a linear programming problem to have multiple solutions,the solution must exist

• A)at the intersection of the non-negativity constraints.
• B)on a non-redundant constraint parallel to the objective function.
• C)at the intersection of the objective function and a constraint.
• D)at the intersection of three or more constraints.
• E)None of the above

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Definitions:

Cost of Capital

The rate of return a company must offer investors to entice them to invest, reflecting the risk of the investment alongside the return.

IRR

An economic indicator, the Internal Rate of Return is utilized to assess the possible profitability of investment opportunities.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows.

Preferred Stock

A security that pays a constant dividend forever. A hybrid between debt and common equity.