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Optimum Solution
From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be totally ignored in reading the optimum solution. The variables not listed in the "basic" column necessarily have zero values. The rest have their values in the solution column. In terms of the optimum solution of our example, we are interested primarily in the product mix of exterior and interior paint, that is, the decision variables XE and XI. From the optimum tableau we have the following summary:Decision Variable Optimum Value DecisionXE 3 1/3 Produce 3 1/3 tons of exterior paintXI 1 1/3 Produce 1 1/3 tons of interior paintZ 12 1/3 Resulting profit is 12 2/3 thousand Shs
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You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma
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analyse the methods of capital investment appraisal
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