Many financial managers believe the payback period is of limited usefulness because it ignores the

time value of money; hence, it is referred to as the discounted payback period.

Indicate whether the statement is true or false

FALSE

Business

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Aggregation reduces the standard deviation of demand

A) only if demand across the regions being aggregated is perfectly positively correlated. B) only if demand across the regions being aggregated is not perfectly positively correlated. C) even if demand across the regions being aggregated is not perfectly positively correlated. D) whenever demand across the regions being aggregated is not perfectly positively correlated.

Business

A package express carrier is considering expanding the fleet of aircraft used to transport packages. There is a total of $220 million allocated for purchases. Two types of aircraft may be purchased - the C1A and the C1B

The C1A costs $25 million, while the C1B costs $18 million. The C1A can carry 60,000 pounds of packages, while the C1B can only carry 40,000 pounds of packages. The company needs at least eight new aircraft. In addition, the firm wishes to purchase at least twice as many C1Bs as C1As. Formulate this as an integer programming problem to maximize the number of pounds that may be carried.

Business