Question: Consider the following capital rationing problem: Project C 0 C 1 C 2 NPV W -10,000 -10,000 0 +6,700 X 0 -20,000 +5,000 +9,000 Y

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.

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

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