Which of the Following Is Not an Assumption of a Maximum

question 71

Multiple Choice

Which of the following is not an assumption of a maximum flow problem?

• A) All flow through the network originates at one node, called the source.
• B) If a node is not the source or the sink then it is a transshipment node.
• C) Flow can move toward the sink and away from the sink.
• D) The maximum amount of flow through an arc is given by the capacity of the arc.
• E) The objective is to maximize the total amount of flow from the source to the sink.

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Definitions:

Market Values

The current market value at which one can buy or sell a service or asset.

WACC Computation

The calculation of a company's weighted average cost of capital, which combines the cost of equity and cost of debt.

Cost of Debt

The effective rate that a company pays on its borrowed funds from external sources.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its investors and creditors.