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1. Two investments with varying cash flows are available as follows: Investment Oct L yr0 ($6,000) ($8,000) Oct. l.yr tl ($5,000) ($3,000) Oct. lyr +2
1. Two investments with varying cash flows are available as follows: Investment Oct L yr0 ($6,000) ($8,000) Oct. l.yr tl ($5,000) ($3,000) Oct. lyr +2 Oct. 1.yr t3 $7,000 $9,000 $9,000 $7,000 Any fraction of an investment can be purchased this Oct. 1st when you wil have $10,000 available for investment, and a year later you will have $7,000 available. Assuming that the prevailing interest rate is 4%, formulate, but do not solve, the linear programming model to determine how the money should be used to maximize its Net Present Value
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