Related to Sensitivity Analysis in Linear Programming,when the Profit Increases

question 3

Multiple Choice

Related to sensitivity analysis in linear programming,when the profit increases with a unit increase in a resource,this change in profit is referred to as the:

• A) add-in price
• B) sensitivity price
• C) shadow price
• D) additional profit

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Definitions:

Capital Projects

Large, long-term investments undertaken to create, expand, or replace a company's physical assets.

Cash Payback Period

The duration it takes for the earnings from an investment to cover the initial amount invested.

Annual Net Cash Flows

The total amount of money, including inflows minus outflows, that a business generates over one year.

Expected Total Cash Flows

The projection of all the cash that is anticipated to be received or paid out over a certain period of time in the future.