| Question 10 | |
| For Questions 10 and 11, assume that the interest rate on the debt facility is zero, and that BP1 | |
| and BP2 are now free to be any non -negative values , including ending in fractions of a cent . | |
| Under these conditions, there is a unique pair of values for BP1 and BP2 that minimizes the value | |
| of ADS. You will need to find this unique pair of values (using whatever modelling approach you | |
| prefer) in order to answer the next two questions. | |
| Change the interest ra te of the debt facility to zero, and identify the pair of values for BP1 and BP2 | |
| that minimise ADS. Under this scenario, what are the last 3 digits (when rounded to the nearest | |
| whole dollar) of the value of ADS? [6 marks] | |
| a. 239 | |
| b. 250 | |
| c. 261 | |
| d. 272 | |
| e. 283 | |
| f. 294 | |