Which of the Following Vertices of the Constraint Region Shown

question 64

Multiple Choice

Which of the following vertices of the constraint region shown is a maximum value of the objective function below.

• A) only vertex C
• B) vertices A and D
• C) vertices B and C
• D) only vertex D
• E) only vertex B

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Definitions:

Cash Outflow

Payments or expenditures made by a business or an individual, leading to a decrease in cash assets.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Rate of Return

A financial ratio that calculates the percentage of profit or loss made on an investment relative to its cost.

Internal Rate

Often referring to the internal rate of return (IRR), it's the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.