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A company wishes to determine an investment strategy for each of the next four years. Five investment types have been selected, investment capital has
A company wishes to determine an investment strategy for each of the next four years. Five investment types have been selected, investment capital has been allocated for each of the coming four years and maximum investment levels have been established for each investment type. An assumption is that amounts invested in any year will remain invested until the end of the planning horizon of four years. The following table summarizes the data for this problem. The values in the body of the table represent net return on investment of one rupee up to the end of the planning horizon. For example, a rupee invested in investment type B at the beginning of year 1 will grow to 1.90 by the end of the fourth year, yielding a net return of * 0.90. Investment made at the beginning of the year Net return data on investment type Rupees available (000's) A B C D E 1 0.80 0.90 0.60 0.75 1.00 500 2 0.55 0.65 0.40 0.60 0.50 600 3 0.30 0.25 0.30 0.50 0.20 750 4 Maximum rupees investment (in 000's) 0.15 0.12 0.25 0.35 750 600 500 800 1000 Determine the amount to be invested at the beginning of each year in each investment to maximize the net rupee return for the four-year period. 0.10 800
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