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Question 4 : Capital Rationing Consider the following capital rationing problem: Question 4: Capital Rationing Consider the following capital rationing problem: Capital Rationing Project Options
Question : Capital Rationing
Consider the following capital rationing problem:
Question 4: Capital Rationing Consider the following capital rationing problem: Capital Rationing Project Options Project w x z -10,ooo 0 -10,ooo -15,000 1 -10,ooo -20,000 20,000 2 0 +4,000 20,000 NPV +9,000 -1 ,500 Financing 20,000 Available Set up this problem as a linear program and solve it. Note: You can allow partial investments, that is, 11 0 x | .11 Calculate and interpret the shadow prices on the capital constraints.
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