In this article we will discuss about the concepts of heuristic model and heuristic programming used in managerial decision making. Heuristic Model: The term 'heuristic' means serving to discover or to stimulate investigation, in a literary sense. In its technical sense, heuristic is frequently associated with the simulation of human problem-solving techniques by means of computers. Heuristic model refers to [...]
Some of the frequently asked exam questions on quantitative models and strategic decisions are as follows: Q.1. What is a ‘Model’ in business decisions and strategies? Ans. The word 'model' is often used in conjunction with quantitative techniques for business decision making and for strategic choices. Almost all quantitative techniques can be classified as models. Generally all business decision situations, [...]
In this article we will discuss about the mathematical analysis of firm’s capital investment project. The net present value of a project is equal to the sum of the present value of all the cash flows (inflows and outflows) associated with the project. NPV = Net present value, An = Cash flow occurring at the end of the year t [...]