Question
At time 0, you have $10,000. Investments A and B are available; their cash flows are shown in the table below: Assume that any money
At time 0, you have $10,000. Investments A and B are available; their cash flows are shown in the table below:
Assume that any money not invested in A or B earns interest at an annual rate of 8%.
Determine how to maximize your cash on hand at time 3. (Use Excel Solver, and show all steps/formulas used in calculating the answer.)
| Investment | Time 0 | Time 1 | Time 2 | Time 3 |
| A | -$1.00 | $0.20 | $1.50 | $0.00 |
| B | $0.00 | -$1.00 | $0.00 | $1.90 |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
