Create an LP spreadsheet model for the following problem and solve it with Solver.

A startup company is expecting an imbalance in its cash flow over the coming months. The spreadsheet shows expected cash receipts and bills due monthly for the next year. The company has three borrowing options to meet its short-term cash deficiencies:

1. They can borrow for 1 month at a time at 0.75% per month (1-month rate).
2. They can borrow for 3 months at a time at 2.00% per 3 months (3-month rate).
3. They can take out a 1-year loan of up to $300,000 one time at an annual rate of 5%. This loan would be available on January 1 and would be paid back on December 31st. Interest payments would have to be made monthly (the applicable monthly rate is 0.05/12).

The company can use any combination of these loan options to meet its cash requirements.

For the 1-month and 3-month loan options, money can be borrowed at the beginning of any month and then must be repaid, with interest, at the beginning of the month in which the obligation is due. For example, if $100,000 is borrowed on a 3-month loan at the beginning of January, then $102,000 must be repaid at the beginning of April (the money would be available for use in January, February and March).

The company can borrow up to $100,000 per month on the 1-month loan and up to $250,000 per month on the 3-month loan. However, the total amount borrowed in any month, adding both the 1-month and 3-month loans together, cannot exceed expected cash receipts for that month.

The company currently has $30,000 on hand and wants to maintain a minimum ending cash balance of at least $10,000 each month. They want to make a plan in which all loans are repaid by the end of year (this implies, for instance, the last time they can borrow on a 3-month loan is at the beginning of September). The company's objective is to plan borrowing for the next year in a way that meets cash requirements and minimizes total interest paid over the year.

Practice Problem Jan 150,000 250,000 Expected Cash Receipts Expected Bills Due Feb Mar 150,000 200,000 350,000 450,000 Apr 300,000 500,000 Month May June July Aug Sept 300,000 500,000 800,000 800,000 500,000 500,000 500,000 600,000 400,000 200,000 Oct 200,000 100,000 Nov 200,000 100,000 Dec 200,000 100,000 Practice Problem Jan 150,000 250,000 Expected Cash Receipts Expected Bills Due Feb Mar 150,000 200,000 350,000 450,000 Apr 300,000 500,000 Month May June July Aug Sept 300,000 500,000 800,000 800,000 500,000 500,000 500,000 600,000 400,000 200,000 Oct 200,000 100,000 Nov 200,000 100,000 Dec 200,000 100,000