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A company is considering four different investment opportunities. The cash outflows associated with these investments over the following three years are as follows: Moreover, the
A company is considering four different investment opportunities. The cash outflows associated with these investments over the following three years are as follows: Moreover, the dividends (cash inflows) associated with these investments during the following three years are as follows: The company can invest in any fraction between 0% and 100% (inclusive) of an investment, and it has the following investment budgets available: The values in all three tables above are given in the time value of money as at the various dates indicated. Any money left over during any year can be spent during the following year (but not after that). Assume an annual inflation rate of 8% and build a linear programming problem that can be used to determine an investment plan that maximises the dividend net present value of the investment portfolio as at the start of 2023. Define your decision variables clearly and provide explanatory comments in square brackets for each model constraint. You do not have to solve the model. A company is considering four different investment opportunities. The cash outflows associated with these investments over the following three years are as follows: Moreover, the dividends (cash inflows) associated with these investments during the following three years are as follows: The company can invest in any fraction between 0% and 100% (inclusive) of an investment, and it has the following investment budgets available: The values in all three tables above are given in the time value of money as at the various dates indicated. Any money left over during any year can be spent during the following year (but not after that). Assume an annual inflation rate of 8% and build a linear programming problem that can be used to determine an investment plan that maximises the dividend net present value of the investment portfolio as at the start of 2023. Define your decision variables clearly and provide explanatory comments in square brackets for each model constraint. You do not have to solve the model
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