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2. (10 points) A local company will be required to make the following payments at the beginning of each of the next 6 years and

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2. (10 points) A local company will be required to make the following payments at the beginning of each of the next 6 years and has available to them the following investment options: Year Start task 1 1 $300 Year Start terin length cost rate of return 2 $500 Savings 1 year variable 5.35% 3 $1300 2 year Bond $2550 9.25% where 4 $2500 3 year Bond $2580 10.25% 5 $900 4 year Bond 4 years 82625 13.25% 6 S4200 all bonds redeem for a face value of $2500.00 with annual dividends based o their rate of re turns. The company has the option to buy 3 and 4 year bonds only at the beginning (year 0) but also will have an option to buy two year bonds every two years (year0, 2 and 1). 2 years 3 years Completely formulate a linear program which could be used to minimize the necessary in vestment today to meet these obligations 2. (10 points) A local company will be required to make the following payments at the beginning of each of the next 6 years and has available to them the following investment options: Year Start task 1 1 $300 Year Start terin length cost rate of return 2 $500 Savings 1 year variable 5.35% 3 $1300 2 year Bond $2550 9.25% where 4 $2500 3 year Bond $2580 10.25% 5 $900 4 year Bond 4 years 82625 13.25% 6 S4200 all bonds redeem for a face value of $2500.00 with annual dividends based o their rate of re turns. The company has the option to buy 3 and 4 year bonds only at the beginning (year 0) but also will have an option to buy two year bonds every two years (year0, 2 and 1). 2 years 3 years Completely formulate a linear program which could be used to minimize the necessary in vestment today to meet these obligations

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