What Should Be the Value of Integer Tolerance in Order

question 8

Multiple Choice

What should be the value of Integer Tolerance in order to find the guaranteed optimal integer solution?

• A) -1
• B) 0
• C) 0.5
• D) 1

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Definitions:

Tax Shield

A deduction allowed by the tax laws that lowers a person's or corporation's taxable income and thus their tax liability.

Incremental Cash Flow

Those cash flows that arise solely from the asset that is being evaluated.

Present Value

The current valuation of upcoming cash flows or a lump sum of money, discounted at an established rate of return.

Sunk Cost

An expense that has already been incurred and cannot be recovered, which should theoretically not influence any future financial decisions or strategies.