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Finco Investment Corporation must determine investment strategy for the firm during the next three years. Currently (time 0), $100,000 is available for investment. Investments A,

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Finco Investment Corporation must determine investment strategy for the firm during the next three years. Currently (time 0), $100,000 is available for investment. Investments A, B, C, D, and E are available. The cash flow associated with investing $1 in each investment is given in Table 38. For example, $1 invested in investment B requires a $1 cash outflow at time 1 and returns 50 at time 2 and $1 at time 3. To ensure that the company's portfolio is diversified, Finco requires that at most $75,000 be placed in any single investment. In addition to investments A-E, Finco can earn interest at 8% per year by keeping uninvested cash in money market funds. Returns from investments may be immediately reinvested. For example, the positive cash flow received from investment C at time 1 may immediately be reinvested in investment B. Finco cannot borrow funds, so the cash available for investment at any time is limited to cash on hand. Required: Formulate an LP that will maximize cash on hand at time 3. *Note: Time 0= present; time 1=1 year from now; time 2=2 years from now; time 3=3 years from now

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