Question 4: Capital Rationing Consider the following capital rationing problem: Project Co C2 NPV W -10,000...

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Question 4: Capital Rationing Consider the following capital rationing problem: Project Co 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, "0x1." Calculate and interpret the shadow prices on the capital constraints. Question 4: Capital Rationing Consider the following capital rationing problem: Project Co 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, "0x1." Calculate and interpret the shadow prices on the capital constraints.

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To set up the capital rationing problem as a linear program we can define decision variab... View the full answer