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Dan Boyd is a financial planner trying to determine how to invest $100,000 for one of his clients. The cash flows for the five investments
Dan Boyd is a financial planner trying to determine how to invest $100,000 for one of his clients. The cash flows for the five investments under consideration are summarized in the following table: Summerve of Cash In-Flowe and Out-Flowe For example, if Dan invests $1 in investment A at the beginning of year 1 , he will receive $0.45 at the beginning of year 2 and another $1.05 at the beginning of year 3. Alternatively, he can invest $1 in investment B at the beginning of year 2 and receive $1.30 at the beginning of year 4 . Entries of "0.00" in the preceding Dan plan his investments if he wants to maximize the amount of money available to his client at the end of year 4 ? a. Select the correct ILP model for this problem. Let A represent Amount to invest in investment A. Let B represent Amount to invest in investment B. Let C represent Amount to invest in investment C. Let D represent Amount to invest in investment D. Let E represent Amount to invest in investment E. Let M1 represent Amount to invest in the money market in 2001. Let M2 represent Amount to invest in the money market in 2002. Let M3 represent Amount to invest in the money market in 2003 . b. Create a spreadsheet model for this problem and solve it using Solver. How much should Dan Boyd invest on each of the five investments and three money market accounts? If your answer is zero, enter "0". c. What is the maximum amount of money available at the beginning of 2004 ? Dan Boyd is a financial planner trying to determine how to invest $100,000 for one of his clients. The cash flows for the five investments under consideration are summarized in the following table: Summerve of Cash In-Flowe and Out-Flowe For example, if Dan invests $1 in investment A at the beginning of year 1 , he will receive $0.45 at the beginning of year 2 and another $1.05 at the beginning of year 3. Alternatively, he can invest $1 in investment B at the beginning of year 2 and receive $1.30 at the beginning of year 4 . Entries of "0.00" in the preceding Dan plan his investments if he wants to maximize the amount of money available to his client at the end of year 4 ? a. Select the correct ILP model for this problem. Let A represent Amount to invest in investment A. Let B represent Amount to invest in investment B. Let C represent Amount to invest in investment C. Let D represent Amount to invest in investment D. Let E represent Amount to invest in investment E. Let M1 represent Amount to invest in the money market in 2001. Let M2 represent Amount to invest in the money market in 2002. Let M3 represent Amount to invest in the money market in 2003 . b. Create a spreadsheet model for this problem and solve it using Solver. How much should Dan Boyd invest on each of the five investments and three money market accounts? If your answer is zero, enter "0". c. What is the maximum amount of money available at the beginning of 2004
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