Describe how fixed costs fi i isin v1 in the cpl model


1. Describe how fixed costs fi, i ∈ V1, in the CPL model should be computed in order to take labour costs, property taxes and site developments costs into account.

2. Your company has to close 20 out of its 125 warehouses. Suppose the SCSE hypotheses hold. How would you define V1? What is the value of p?

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Financial Management: Describe how fixed costs fi i isin v1 in the cpl model
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