Make up an example, as described in Problem 7, with 20 possible investments. However, do it so the ratios of NPV to cash requirement are in a very tight range, from 3 to 3.2. Then use Solver to find the optimal 6.4 Fixed-Cost Models 297 solution when the Solver tolerance is set to its default value of 5%, and record the solution. Next, solve again with the tolerance set to 0%. Do you get the same solution? Try this on a few more instances of the model, where you keep tinkering with the inputs. The question is whether the tolerance matters in these types of “close call” problem
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