Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?
A) a decision variable
B) an objective function
C) a constraint
D) a parameter
Answer: C
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Mini-Case Question. As the market for this product matures, Coller may need to rethink its pricing in order to optimize profits as the market growth slows
If the objective is to optimize profits, is it a good idea for Coller Inc to decrease the price by 10% in an attempt to increase market share to 6%? A) Yes, because sales revenues will increase by $16 million. B) Yes, because margin per unit will increase by $200. C) Yes, because gross profit will increase by $16 million. D) No, because gross profit will decrease by $16 million. E) No, because variable costs will increase by 10%.
Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to ________
Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Discount Rate A -100 40 50 60 N/A 0.11 B -73 30 30 30 30 0.11 A) invest in project A, since NPVB < NPVA B) invest in project B, since IRRB > IRRA C) invest in project B, since NPVB > NPVA D) invest in project A, since NPVA > 0