A Benefit Constraint Refers to a Functional Constraint with a ≥

question 14

True/False

A benefit constraint refers to a functional constraint with a ≥ sign in a linear programming model.

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Definitions:

Payback Method

A capital budgeting technique that calculates the time needed to recoup the investment cost through net cash flows.

Cost of Capital

The minimum profit rate a company needs to achieve on its investment ventures to keep its market value stable and draw in capital.

Cash Inflows

Money received by a business from various sources including sales, investments, and financing.

Useful Life

The estimated period over which an asset is expected to be used by the entity, or be productive.