What Is the Correct Constraint for Node 2 in the Following

question 43

Multiple Choice

What is the correct constraint for node 2 in the following diagram? ​ ​

• A) X₁₂ + X₂₃ = 100
• B) X₁₂ − X₂₃ ≤ 100
• C) −X₁₂ + X₂₃ ≥ −100
• D) X₁₂ − X₂₃ ≥ 100

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Definitions:

Required Rate of Return

The minimum return an investor expects to achieve on an investment, considering the risk involved.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period of time.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of income and expenses.

Required Rate of Return

The minimum expected return by investors for investing in a non-risk-free asset, considering its risk level.