A company will face the following cash requirements in the next eight quarters (positive entries represent cash needs while negative entries represent cash surpluses): Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 100 500 100 600 500 200 600 900 The company has three borrowing possibilities: ! A two-year loan available at the beginning of Q1, with an interest rate of 1% per quarter. ! The other two borrowing opportunities are available at the beginning of every quarter: a six-month loan with an interest rate of 1.8% per quarter, and a quarterly loan at an interest rate of 2.5% for the quarter.

Generate the sensitivity report for Exercise 3.2 with your favorite LP solver. (i) Suppose the cash requirement in Q2 is 300 (instead of 500). How would this affect the wealth in Q9? (ii) Suppose the cash requirement in Q2 is 100 (instead of 500). Can the sensitivity report be used to determine the wealth in Q9? (iii) One of the companys suppliers may allow deferred payments of $50 from Q3 to Q4. What would be the value of this?