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Exhibit 4.2
The following questions correspond to the problem below and associated Analytic Solver Platform sensitivity report.
Robert Hope received a welcome surprise in this management science class; the instructor has decided to let each person define the percentage contribution to their grade for each of the graded instruments used in the class. These instruments were: homework, an individual project, a mid-term exam, and a final exam. Robert's grades on these instruments were 75, 94, 85, and 92, respectively. However, the instructor complicated Robert's task somewhat by adding the following stipulations: The following LP model allows Robert to maximize his numerical grade.
-Refer to Exhibit 4.2. Based on the Analytic Solver Platform sensitivity report information, is there anything Robert can request of his instructor to improve his final grade?
CCA Rate
Refers to the Capital Cost Allowance rate, which is used in taxation to represent the annual depreciation expense of a physical asset's cost.
NPV
Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Salvage Value
The estimated resale value of an asset at the end of its useful life, accounting for depreciation.
Discount Rate
In discounted cash flow analysis, this is the rate used to ascertain the present worth of cash flows expected in the future.
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