The Simplex Method of Linear Programming (LP)

question 3

Multiple Choice

The simplex method of linear programming (LP) :

• A) considers only the extreme points of the feasible region to achieve efficiency in solving LP problems
• B) explicitly enumerates all corner points of the feasible region and selects the best objective function value
• C) evaluates all constraints for feasibility
• D) is not used in the Analytic Solver Platform software

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows over a period, indicating overall liquidity.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods, leading to exponential growth of the investment or loan.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Required Rate

The minimum return or yield an investment must offer to be considered viable, often referred to as the required rate of return.