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Natasha's Flowers, a local florist, purchases fresh flowers each day

Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer

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Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $1000 per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience, the shop has estimated the following NPV of purchasing each type:

Natashaâ€™s Flowers, a local florist, purchases fresh flowers each day

What combination of flowers should the shop purchase each day?

Transcribed Image Text:

NPV per Bunch $ 3 Roses Lilies Pansies Orchids Cost per Bunch $20 30 30 80 25 10 10 20

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Question Posted: Aug 06, 2014 07:25 AM

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