Introduction to mathematical programming
4th Edition
ISBN: 9780534359645
Author: Jeffrey B. Goldberg
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Chapter 3.6, Problem 1P
Explanation of Solution
Calculation:
The Net Present Value (NPV) of an investment is the amount by which the investment will increase the firm’s value.
Let assuming the annual rate interest, r = 0.02, now the user can compute the NVP for investment 1 as,
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A Company X invests $300,000 in a new product. If the payback period is 5 years, find the product return cash flow per year.
A 0% coupon bond maturing in 10 years is yielding 5.29%. The bond's duration is 14.1 years and its convexity is 106.34. What is the new price of the bond if the interest rate rises 1.00%?
Multiple Choice
$597.21
$513.01
$516.18
$864.32.
A construction company has four large bulldozers located at four
different garages. The bulldozers are to be moved to four different construction
sites. The distances in miles between the bulldozers and the construction sites
are given below.
Bulldozer/
A
B
C
D
Site
Students
1
90
75
75
80
solve it
2
35
85
55
65
yourself
3
125
95
90
105
4
45
110
95
115
How should the bulldozers be moved to the construction sites in order to
minimize the total distance traveled?
Chapter 3 Solutions
Introduction to mathematical programming
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.2 - Prob. 1PCh. 3.2 - Prob. 2PCh. 3.2 - Prob. 3PCh. 3.2 - Prob. 4PCh. 3.2 - Prob. 5P
Ch. 3.2 - Prob. 6PCh. 3.3 - Prob. 1PCh. 3.3 - Prob. 2PCh. 3.3 - Prob. 3PCh. 3.3 - Prob. 4PCh. 3.3 - Prob. 5PCh. 3.3 - Prob. 6PCh. 3.3 - Prob. 7PCh. 3.3 - Prob. 8PCh. 3.3 - Prob. 9PCh. 3.3 - Prob. 10PCh. 3.4 - Prob. 1PCh. 3.4 - Prob. 2PCh. 3.4 - Prob. 3PCh. 3.4 - Prob. 4PCh. 3.5 - Prob. 1PCh. 3.5 - Prob. 2PCh. 3.5 - Prob. 3PCh. 3.5 - Prob. 4PCh. 3.5 - Prob. 5PCh. 3.5 - Prob. 6PCh. 3.5 - Prob. 7PCh. 3.6 - Prob. 1PCh. 3.6 - Prob. 2PCh. 3.6 - Prob. 3PCh. 3.6 - Prob. 4PCh. 3.6 - Prob. 5PCh. 3.7 - Prob. 1PCh. 3.8 - Prob. 1PCh. 3.8 - Prob. 2PCh. 3.8 - Prob. 3PCh. 3.8 - Prob. 4PCh. 3.8 - Prob. 5PCh. 3.8 - Prob. 6PCh. 3.8 - Prob. 7PCh. 3.8 - Prob. 8PCh. 3.8 - Prob. 9PCh. 3.8 - Prob. 10PCh. 3.8 - Prob. 11PCh. 3.8 - Prob. 12PCh. 3.8 - Prob. 13PCh. 3.8 - Prob. 14PCh. 3.9 - Prob. 1PCh. 3.9 - Prob. 2PCh. 3.9 - Prob. 3PCh. 3.9 - Prob. 4PCh. 3.9 - Prob. 5PCh. 3.9 - Prob. 6PCh. 3.9 - Prob. 7PCh. 3.9 - Prob. 8PCh. 3.9 - Prob. 9PCh. 3.9 - Prob. 10PCh. 3.9 - Prob. 11PCh. 3.9 - Prob. 12PCh. 3.9 - Prob. 13PCh. 3.9 - Prob. 14PCh. 3.10 - Prob. 1PCh. 3.10 - Prob. 2PCh. 3.10 - Prob. 3PCh. 3.10 - Prob. 4PCh. 3.10 - Prob. 5PCh. 3.10 - Prob. 6PCh. 3.10 - Prob. 7PCh. 3.10 - Prob. 8PCh. 3.10 - Prob. 9PCh. 3.11 - Prob. 1PCh. 3.11 - Show that Fincos objective function may also be...Ch. 3.11 - Prob. 3PCh. 3.11 - Prob. 4PCh. 3.11 - Prob. 7PCh. 3.11 - Prob. 8PCh. 3.11 - Prob. 9PCh. 3.12 - Prob. 2PCh. 3.12 - Prob. 3PCh. 3.12 - Prob. 4PCh. 3 - Prob. 1RPCh. 3 - Prob. 2RPCh. 3 - Prob. 3RPCh. 3 - Prob. 4RPCh. 3 - Prob. 5RPCh. 3 - Prob. 6RPCh. 3 - Prob. 7RPCh. 3 - Prob. 8RPCh. 3 - Prob. 9RPCh. 3 - Prob. 10RPCh. 3 - Prob. 11RPCh. 3 - Prob. 12RPCh. 3 - Prob. 13RPCh. 3 - Prob. 14RPCh. 3 - Prob. 15RPCh. 3 - Prob. 16RPCh. 3 - Prob. 17RPCh. 3 - Prob. 18RPCh. 3 - Prob. 19RPCh. 3 - Prob. 20RPCh. 3 - Prob. 21RPCh. 3 - Prob. 22RPCh. 3 - Prob. 23RPCh. 3 - Prob. 24RPCh. 3 - Prob. 25RPCh. 3 - Prob. 26RPCh. 3 - Prob. 27RPCh. 3 - Prob. 28RPCh. 3 - Prob. 29RPCh. 3 - Prob. 30RPCh. 3 - Prob. 31RPCh. 3 - Prob. 32RPCh. 3 - Prob. 33RPCh. 3 - Prob. 34RPCh. 3 - Prob. 35RPCh. 3 - Prob. 36RPCh. 3 - Prob. 37RPCh. 3 - Prob. 38RPCh. 3 - Prob. 39RPCh. 3 - Prob. 40RPCh. 3 - Prob. 41RPCh. 3 - Prob. 42RPCh. 3 - Prob. 43RPCh. 3 - Prob. 44RPCh. 3 - Prob. 45RPCh. 3 - Prob. 46RPCh. 3 - Prob. 47RPCh. 3 - Prob. 48RPCh. 3 - Prob. 49RPCh. 3 - Prob. 50RPCh. 3 - Prob. 51RPCh. 3 - Prob. 52RPCh. 3 - Prob. 53RPCh. 3 - Prob. 54RPCh. 3 - Prob. 56RPCh. 3 - Prob. 57RPCh. 3 - Prob. 58RPCh. 3 - Prob. 59RPCh. 3 - Prob. 60RPCh. 3 - Prob. 61RPCh. 3 - Prob. 62RPCh. 3 - Prob. 63RP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.Similar questions
- Consider two defaultable 1-year loans with a principal of $1 million each. The probability of default on each loan is 2.5%. Assume that if one loan defaults, the other does not. Assume that in the event of default, the loan leads to a loss that can take any value between $0 and $1 million with equal probability, i.e., the probability that the loss is higher than $ ? million is 1 − ?. If a loan does not default, it yields a profit equal to $20,000. Compute the 1-year 98% Value at Risk (VaR) and Expected Shortfall (ES) of a single loan.arrow_forwardQuestion: Suppose there are n people in a group, each aware of a scandal no one else in the group knows about. These people communicate by telephone; when two people in the group talk, they share information about all scandals each knows about. For example, on the first call, two people share information, so by the end of the call, each of these people knows about two scandals. The gossip problem asks for G(n), the minimum number of telephone calls that are needed for all n people to learn about all the scandals. a). Find G(1), G(2), G(3), and G(4). b). Use mathematical induction to prove that G(n) 4. [Hint: In the inductive step, have a new person call a particular person at the start and at the end.] c). Prove that G(n)= 2n – 4 for n> 4.arrow_forwardPlease solve these 2.arrow_forward
- Please solve a,b, c, and d.arrow_forwardVolume of shale can be calculated if gamma ray index data is available using the following equation; Vsh=0.083(23.71GR -1) where; IGR=gamma ray index Vsh=Volume of shale on the basis of the following Vsh cut-offs,formations are regarded as clean, Shaly,or shale zone. For Vsh <10 %, implies a clean shale For Vsh 10-35% implies a shaly sand For Vsh> 35% implies a shale zone Write a PHP program to determine the type of formation.(Test the program for IGR=1.8308,2.1513,and 2.3756)arrow_forwardFind all Nash equilibria including mixed strategy Nash equilibrium. Explain.arrow_forward
- In a lake, the population of a particular fish species is about 1 million. Fish reproduce by 20% of the population each month, regardless of the season. In addition, fish die naturally after living for an average of 10 months. There are two separate companies (for example, A and B) fishing with 5 boats on the edge of this lake. According to current data, each boat catches 5000 fish per month. However, if the total number of boats caught in the lake increases, the number of fish to be caught by each boat decreases, as the boats will prevent each other from fishing. In addition, if the fish population in the lake increases, the fish caught per boat increases, and if the population decreases, the fish caught per boat decreases. As companies earn money from hunting, they want to buy new boats over time and enlarge their boat fleet. Indicate the causal relationships in this system with arrows and signs. Show the causality loops in this system, at least 1 negative, at least 1 positive, and…arrow_forwardIn a lake, the population of a particular fish species is about 1 million. Fish reproduce by 20% of the population each month, regardless of the season. In addition, fish die naturally after living for an average of 10 months. There are two separate companies (for example, A and B) fishing with 5 boats on the edge of this lake. According to current data, each boat catches 5000 fish per month. However, if the total number of boats caught in the lake increases, the number of fish to be caught by each boat decreases, as the boats will prevent each other from fishing. In addition, if the fish population in the lake increases, the fish caught per boat increases, and if the population decreases, the fish caught per boat decreases. As companies earn money from hunting, they want to buy new boats over time and enlarge their boat fleet.arrow_forwardEGro X Gro X 回Nev X Intr X PDF PDE ASS X New X File C:/Users/HP/Desktop/SOFTWA.. QUESTION 5 The time till failure of a part, T years, has the probability density function below and is zero elsewhere, where k is a constant. f() = kr4 (t> 1) i. Sketch a graph of the failure rate against time. ii. What does the shape of this graph tell you?arrow_forward
- b. Portfolio B consists of 15 stocks, 10 of which have beta 1 and idiosyncratic variance 0.02, and 5 of which have beta 1 and idiosyncratic variance 0.04. What is the minimum idiosyncratic variance one can achieve by investing in these stocks? You should assume that the idiosyncratic risks of the stocks included in B are independent across stocks. (Hint: the portfolio that minimises the idiosyncratic variance has equal weights in stocks with the same idiosyncratic variance.)arrow_forwardIf the company invests 100,000 USD or less, their profit will be based on 75,000 USD as first 25,000 USD goes to set up the business in the first place. For the first 100,000 USD, the profit margin is low: 4.5%. Therefore, for every 100 dollar they spend, they get a profit of 4.5 dollar. For an investment greater than 100,000 USD, for the first 100,000 USD (actually on 75,000 USD as 25,000 is the setup cost), the profit margin is 4.5% whereas for the rest, it goes up to 8%. For example, if they invest 250,000 USD, they will get an 8% profit for the 150,000 USD. In addition, from the rest 100,000 USD, 25,000 is the setup cost and there will be a 4.5% profit on the rest 75,000. The investment will always be greater or equal to 25,000 and multiple of 100. Complete the RECURSIVE methods below that take an array of integers (investments) and an iterator (always sets to ZERO(‘0’) when the method is initially called) and prints the profit for the corresponding investment. You must…arrow_forwardA computer company produces hardware and software using the same plant and labor. The total cost of producing computer processing units H and software programs S is given by TC=aH+bS - CHS where a, b, and c are positive. Is this total cost function consistent with the presence of economies or diseconomies of scale? For the product-specific case for hardware, the firm experiences neither economies nor diseconomies of scale. For the product-specific case for software, the firm experiences of scale.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Operations Research : Applications and AlgorithmsComputer ScienceISBN:9780534380588Author:Wayne L. WinstonPublisher:Brooks Cole
Operations Research : Applications and Algorithms
Computer Science
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Brooks Cole