24. Cash Flow Management. A financial manager is managing a cash fund. His invest ment alternatives available are various certificates of deposit, also known as CDs, as listed in the following table: Investment Yield Availability Beginning of each month Beginning of Months 1,2,3,4 Beginning of Month 1 1-month CD 3-month CD 6-month CD 0.5% 1.75% 2.3% DATA file Cash Management However, he also must ensure that sufficient funds are available to pay company expen- ditures over the next six months. The following table lists the net expenditures (in thou- sands of dollars) that the manager is obligated to cover (cash amounts in parenthesis indicate a net inflow of cash rather than outflow). Month 1 2 3 Net Expenditures ($1,000s) $45 ($11) $25 ($22) $43 ($15) 4 5 The cash on hand to invest at the start of month I is $200,000 and the minimum cash required to be available at the end of month 6 is $100,000. Develop and solve a linear program that will recommend how to invest to maximize the amount of interest income accrued over the next six months while satisfying all financial commitments. Problems 657 (Hint: Investment time starts at the beginning of the month and returns at the end of the month. For example, money invested in a 1-month CD in month 1 will be invested at the beginning of month 1 and returned with interest at the end of month 1. Likewise, money invested in a 3-month CD at the start of month 1 will be returned with interest at the end of month 3.) 75