Question
Linear programming model which involves funds allocation of limited investment is classified as:
  1. Ordination budgeting model
  2. Capital budgeting models
  3. Funds investment models
  4. Funds origin models.

Answer

  1. Capital budgeting models

Solution:

In linear programming, Capital budgeting models to minimize the total capital cost.

The solutions from the model are used to decide the best combination of capital resources and best times to start and finish projects and to determine the net capital cost.

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