Solve the Linear Programming Problem $P = 2 x + 8 y$

question 62

Multiple Choice

Solve the linear programming problem. Maximize $P = 2 x + 8 y$ subject to $x + y \leq 4$ $2 x + y \leq 5$ $x \geq 0 , y \geq 0$

• A) \(x = 0\) , \(y = 5\) , \(P = 40\)
• B) \(x = 1\) , \(y = 3\) , \(P = 26\)
• C) \(x = 1\) , \(y = 0\) , \(P = 26\)
• D) \(x = 2.5\) , \(y = 0\) , \(P = 5\)
• E) \(x = 0\) , \(y = 4\) , \(P = 32\)

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Time Value

A financial principle acknowledging that receiving money now is more advantageous than receiving the same amount in the future due to its earning potential.

Payback Method

A capital budgeting technique that calculates the time required to recoup the initial investment through cash inflows.

Accounting Rate

Often refers to the accounting rate of return (ARR), a financial ratio used to measure the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.