Strong Construction Company is interested in taking loans from banks for some of its projects P, Q, R, S, T. The rates of interest and the lending capacity differ from bank to bank. All these projects are to be completed. The relevant details are provided in the following table. Interest rate in percentage for Max. Credit (in sh 000) Bank P Q R S T Equity 20 18 18 17 17 175 National Bank 16 16 16 15 16 100 Cooperative Bank 15 15 15 13 14 400 Amount required (sh 000) 200 150 130 125 75 Required: Test for Optimality using Stepping Stone Method
Strong Construction Company is interested in taking loans from banks for some of its projects P, Q, R, S, T. The rates of interest and the lending capacity differ from bank to bank. All these projects are to be completed. The relevant details are provided in the following table.
Interest rate in percentage for Max. Credit (in sh 000)
Bank P Q R S T
Equity 20 18 18 17 17 175
National Bank 16 16 16 15 16 100
Cooperative Bank 15 15 15 13 14 400
Amount required (sh 000) 200 150 130 125 75
Required:
- Test for Optimality using Stepping Stone Method
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