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5. (20 points) A businessman is considering an investment project. The project has a lifetime of four years, with cash flows of -100,000, +50,000, +70,000,

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5. (20 points) A businessman is considering an investment project. The project has a lifetime of four years, with cash flows of -100,000, +50,000, +70,000, +30,000 in each of the four years, respectively. At any time he may borrow funds at the rates of 12%, 22%,and 34% (total) for 1, 2, 3 periods, respectively. He may also loan fund at 10% per period. He calculate the present value of a project as the maximum amount of money he would pay now, to another party, for the project, assuming that he has no cash on hand and must borrow and lend to pay the other party and operate the project while maintaining a non-negative cash balance after all debts are paid. Formulate the project valuation problem in a linear programming framework

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