When Choosing Which Corner Point to Advance to Next,the Simplex

question 25

Multiple Choice

When choosing which corner point to advance to next,the simplex method chooses the one:

• A)that is closest
• B)along the edge with the largest rate of improvement
• C)along the edge with a negative rate of improvement
• D)that is furthest from the origin
• E)None of the above

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Definitions:

NPV

Net Present Value; the difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess the profitability of an investment.

Project

A coordinated agenda of tasks linked together, intended to be carried out over an established duration and within specified cost and limitations.

Corporate Tax Rate

The percentage of a corporation's income that is taken as tax by the government.

Depreciation Tax Shield

A decrease in taxable income for businesses due to the allowance for depreciation, resulting in a lower tax liability.