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:

What combination of flowers should the shop purchase each day?Appendix

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NPV per Bunch Cost per Bunch Max. Bunches Roses $3 $20 Lilies 8 30 Pansies 4 30 Orchids 20 80 2005 10 10