In capital-budgeting problems within the firm, there is a debate as to whether or not the…

 In capital-budgeting problems within the firm, there is a debate as to whether or not the appropriate objective function should be discounted. The formulation of the capital-budgeting problem without discounting is as follows:

In capital-budgeting problems within the firm, there is a debate as to whether or not the...-1

where ci j is the cash outflow (ci j i j > 0) in period i for project j; the righthand-side constant fi is the net exogenous funds made available to (fi > 0) or withdrawn from (fi j is the level of investment in project j; u j is an upper bound on the level of investment in project j; and vN is a variable measuring the value of the holdings of the division at the end of the planning horizon. If the undiscounted problem is solved by the bounded variable simplex method, the optimal solution is x ∗ j for j = 1, 2, . . . , J with associated shadow prices (dual variables) y ∗ i for i = 0, 1, 2, . . . , N.

 a) Show that y ∗ N = 1.

 b) The discount factor for time i is defined to be the present value (time i = 0) of one dollar received at time i. Show that the discount factor for time i, ρ ∗ i is given by:

                                                             In capital-budgeting problems within the firm, there is a debate as to whether or not the...-2

(Assume that the initial budget constraint is binding so that y ∗ 0 > 0.)

c) Why should ρ ∗ 0 = 1?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Online Academic Experts
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Health Care
awesome work
Customer 452777, October 14th, 2021
Business Management
Awesome job, Thank you
Customer 453201, June 12th, 2022
Management
It's the second time I use this service and it does not let me down. Work quality is so good for its price!
Customer 452985, December 3rd, 2021
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Human Resources Management (HRM)
On time and as always a great service! This semester has been very time consuming a tough for my family so this service has not only been a life saver but helped me keep up my grades! If you are in a time crunch or need help, don't hesitate! They are worth it!
Customer 453077, April 4th, 2022
Professions and Applied Sciences
Thanks. This helps a lot. Was a bit late but some cushion was given.
Customer 453015, February 10th, 2022
Emergency Management
Overall, I think it's a great service. I have yet to submit the assignment, so I don't know what kind of grade I'll get. But customer service was excellent. Reviews were made and the assignment proofed for satisfaction.
Customer 453015, December 15th, 2021
Business Studies
Thank you very much for a good job done and a quick turn around time.
Customer 452615, March 31st, 2021
Health Care
The writer did not follow my choice of topic (Food/Water Insecurity, Hunger, & Poverty), the paper was instead written about Climate Change in Africa. However, the paper was still great and informative. Thank you!
Customer 452777, January 28th, 2022
Business Studies
Thank you so much! I had to take my dog to the ER and had no time for the assignment. I really appreciate your help! I can't thank you enough! I really appreciate the work and integrity put into it. Thank you for taking it seriously and not bullshiting the paper.
Customer 452815, July 26th, 2021
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
AllEscortAllEscort
Live ChatWhatsApp
AllEscort