It is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank? a. sales volume b. confirming that the sum of the expected profit after taxes plus depreciation exceeds the annual repayment. c. Ensuring that profit before interest and taxes is approximately 5% of sales

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter8: Evolutionary Solver: An Alternative Optimization Procedure
Section8.6: Fitting An S-shaped Curve
Problem 12P
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It is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank?

a. sales volume

b. confirming that the sum of the expected profit after taxes plus depreciation exceeds the annual repayment.

c. Ensuring that profit before interest and taxes is approximately 5% of sales

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