Solve the Following LP Problem Graphically by Enumerating the Corner $\quad 8 \mathrm { X } _ { 1 } + 5 \mathrm { X } _ { 2 }$

question 8

Short Answer

Solve the following LP problem graphically by enumerating the corner points.
MiN: $\quad 8 \mathrm { X } _ { 1 } + 5 \mathrm { X } _ { 2 }$
Subject to: $\quad 6 X _ { 1 } + 7 X _ { 2 } \geq 84$
$\mathrm { X } _ { 1 } \geq 4$
$X _ { 2 } \geq 6$
$\mathrm { X } _ { 1 } , \mathrm { X } _ { 2 } \geq 0$

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Definitions:

Cost of Capital

The investment return rate a corporation requires to sustain its market valuation and pull in investment.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.

Certainty Equivalent Approach

The Certainty Equivalent Approach is a method used in finance to evaluate investments by adjusting uncertain future cash flows to their guaranteed amounts.

Capital Budgeting

The process of allocating resources for significant investments or projects in a company, assessing their potential financial returns and risks.