18. Consider the following capital rationing problem: Project C0 C1 C2 NPV W 10,000 10,000 0 6,700...

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18. Consider the following capital rationing problem:

Project C0 C1 C2 NPV W 10,000 10,000 0 6,700 X 0 20,000 5,000 9,000 Y 10,000 5,000 5,000 0 Z 15,000 5,000 4,000 1,500 Financing available 20,000 20,000 20,000 Set up this problem as a linear program and solve it.

You can allow partial investments, that is, 0 x 1. Calculate and interpret the shadow prices 17 on the capital constraints.

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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