3. At the present time, the beginning of year 1, an Investment Corporation has C1 = $100,000 to invest for the next four years. There are five possible investments, labeled A through E. The tim- ing of cash outflows and cash inflows for these investments is somewhat irregular. Information for the other investments follows, where all returns are per dollar invested: Investment A: to take part in investment A, cash must be invested at the beginning of year 1, and for every dollar invested, there are returns of $0.50 and $1.00 at the beginnings of years 2 and 3. Investment B: Invest at the beginning of year 2, receive returns of $0.50 and $1.00 at the beginnings of years 3 and 4. Investment C: Invest at the beginning of year 1, receive return of $1.20 at the beginning of year 2. Investment D: Invest at the beginning of year 4, receive return of $1.90 at the beginning of year 5. Investment E: Invest at the beginning of year 3, receive return of $1.50 at the beginning of year 4. At the beginning of any year, the company can invest only cash on hand, which includes returns from previous investments. Any cash not invested in any year can be put in a short-term money market account that earns 3% annually. Under each of the following assumptions, develop an optimization model for the company to find an investment strategy that maximizes the amount of cash on hand at the beginning of year 5. For each case, specify the type of your optimization model, and solve it using any optimization software package you have access (such as Excel Solver). a. Assume that any amounts can be invested in these strategies and that the returns are the same for each dollar invested. However, to create a diversified portfolio, the investment corporation wants to limit the amount put into any investment to $75,000. 1 b. The minimum amount of $50000 must be put into any investment. However, to create a diversified portfolio, the investment corporation wants to limit the amount put into any investment to $75,000. c. Either an investment alternative is not selected, or if it is selected, a minimum amount of $75,000 is selected. 3. At the present time, the beginning of year 1, an Investment Corporation has C1 = $100,000 to invest for the next four years. There are five possible investments, labeled A through E. The tim- ing of cash outflows and cash inflows for these investments is somewhat irregular. Information for the other investments follows, where all returns are per dollar invested: Investment A: to take part in investment A, cash must be invested at the beginning of year 1, and for every dollar invested, there are returns of $0.50 and $1.00 at the beginnings of years 2 and 3. Investment B: Invest at the beginning of year 2, receive returns of $0.50 and $1.00 at the beginnings of years 3 and 4. Investment C: Invest at the beginning of year 1, receive return of $1.20 at the beginning of year 2. Investment D: Invest at the beginning of year 4, receive return of $1.90 at the beginning of year 5. Investment E: Invest at the beginning of year 3, receive return of $1.50 at the beginning of year 4. At the beginning of any year, the company can invest only cash on hand, which includes returns from previous investments. Any cash not invested in any year can be put in a short-term money market account that earns 3% annually. Under each of the following assumptions, develop an optimization model for the company to find an investment strategy that maximizes the amount of cash on hand at the beginning of year 5. For each case, specify the type of your optimization model, and solve it using any optimization software package you have access (such as Excel Solver). a. Assume that any amounts can be invested in these strategies and that the returns are the same for each dollar invested. However, to create a diversified portfolio, the investment corporation wants to limit the amount put into any investment to $75,000. 1 b. The minimum amount of $50000 must be put into any investment. However, to create a diversified portfolio, the investment corporation wants to limit the amount put into any investment to $75,000. c. Either an investment alternative is not selected, or if it is selected, a minimum amount of $75,000 is selected