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An investor has $100,000 to invest right now (the beginning of year 1). The cash flows associated with five available investments are shown in the

An investor has $100,000 to invest right now (the beginning of year 1). The cash flows associated with five available investments are shown in the attachment. For example, every dollar invested in A in year 1 yields $1.40 in year 4. In addition to these investments, the investor can invest as much money each year as he wants in CDs, which pay 3% interest. The investor wants to maximize his available cash in year 4. Assuming that he can put no more than $50,000 in any investment, develop an LP model in xcel to help the investor achieve his goal.

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a. How the investor maximize his available cash in year 4.

b. How the interest rate affects the investors' maximum available cash in year 4 and his investment decisions.

c. How the interest rate and the cash allowed for each investment jointly affect the investors maximum available cash in year 4 and his investment decisions.

Data on investments Year of investment Year of return Return CD interest rate Max amt per investment Initial amount to invest Invest A Invest B Invest C Invest D Invest E 1.4 1.15 1.28 1.15 1.32 3%. $50,000 $100,000

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