In Linear Programming,a Statement Such as "Maximize Contribution" Becomes an Objective

question 63

True/False

In linear programming,a statement such as "maximize contribution" becomes an objective function when the problem is formulated.

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Definitions:

Future Cash Flows

Estimates of the amount of money expected to be received or paid out in the future through investment, business operations, or other financial activities.

Investment

The act of allocating resources, typically money, with the expectation of generating an income or profit.

Opportunity Cost of Capital

The return foregone by investing in a project instead of in comparable financial assets with similar risk.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) expected from an investment, adjusted for time and interest.