Microsoft Excel 15.0 Answer Report Worksheet: [Assignment 4_Solution.xlsx]1(a) Report Created: 3/12/2015 3:33:11 PM Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: Simplex LP Solution Time: 0.015 Seconds. Iterations: 3 Subproblems: 0 Solver Options Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative Objective Cell (Max) Cell Name $G$9 Year 6 Ending Balance Original Value $54 Variable Cells Cell Name Original Value $B$11 Participation Project A 51% $C$11 Participation Project B 100% $D$11 Participation Project C 0% Constraints Cell Name $G$4 Year 1 Ending Balance $G$5 Year2 Ending Balance $G$6 Year 3 Ending Balance $G$7 Year 4 Ending Balance $G$8 Year 5 Ending Balance $G$9 Year 6 Ending Balance $B$11 Participation Project A $C$11 Participation Project B $D$11 Participation Project C Final Value $54 Final Value Integer 51% Contin 100% Contin 0% Contin Cell Value Formula $8 $G$4>=$I$4 $2 $G$5>=$I$5 $2 $G$6>=$I$6 $17 $G$7>=$I$7 $48 $G$8>=$I$8 $54 $G$9>=$I$9 51% $B$11<=$B$13 100% $C$11<=$C$13 0% $D$11<=$D$13 Status Slack Not Binding $6 Not Binding $0 Binding $0 Not Binding $15 Not Binding $46 Not Binding $52 Not Binding 0.4886363636 Binding 0 Not Binding 1 Starting Balance Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Cash Flow (at full participation) Project A Project B Project C Total Case Flow Other Project -4.5 -6 -14 -8.3011363636 -6.8 -8 -8 -11.4772727273 -6.3 -3 -8 -6.2215909091 21 -2 -7 8.7386363636 0 25 -4 25 0 0 38 0 Participation 51% <= 100% <= 100% 0% <= 100% 100% 6 6 6 6 6 6 $10 Ending Balance $8 $2 $2 $17 $48 $54 >= >= >= >= >= >= Minimum Balance 2 2 2 2 2 2 Microsoft Excel 15.0 Answer Report Worksheet: [Assignment 4_Solution.xlsx]1(b) Report Created: 3/12/2015 3:33:26 PM Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: Simplex LP Solution Time: 0.047 Seconds. Iterations: 3 Subproblems: 0 Solver Options Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative Objective Cell (Max) Cell Name $G$9 Year 6 Ending Balance Original Value $62 Variable Cells Cell Name Original Value $B$11 Participation Project A 74% $C$11 Participation Project B 100% $D$11 Participation Project C 0% Constraints Cell Name $G$4 Year 1 Ending Balance $G$5 Year2 Ending Balance $G$6 Year 3 Ending Balance $G$7 Year 4 Ending Balance $G$8 Year 5 Ending Balance $G$9 Year 6 Ending Balance $B$11 Participation Project A $C$11 Participation Project B $D$11 Participation Project C Final Value $62 Final Value Integer 74% Contin 100% Contin 0% Contin Cell Value Formula $9 $G$4>=$I$4 $3 $G$5>=$I$5 $2 $G$6>=$I$6 $23 $G$7>=$I$7 $55 $G$8>=$I$8 $62 $G$9>=$I$9 74% $B$11<=$B$13 100% $C$11<=$C$13 0% $D$11<=$D$13 Status Slack Not Binding $7 Not Binding $1 Binding $0 Not Binding $21 Not Binding $53 Not Binding $60 Not Binding 0.2613636364 Binding 0 Not Binding 1 Starting Balance Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Cash Flow (at full participation) Project A Project B Project C Total Case Other Project -4.5 -6 -14 -9.323864 -6.8 -8 -8 -13.02273 -6.3 -3 -8 -7.653409 21 -2 -7 13.51136 0 25 -4 25 0 0 38 0 Participati 74% <= 100% <= 100% 0% <= 100% 100% 7 7 7 7 7 7 $11 Ending Balance $9 $3 $2 $23 $55 $62 >= >= >= >= >= >= Minimum Balance 2 2 2 2 2 2 Homework 4 1. The Samsung is considering taking part in one or more of tree different development projects - A, B, and C - that are about to be launched. Each project requires a significant investment over the next few year, and then would be sold upon completion. The projected cash flows (in millions of dollars) associated with each project are shown in the table below. Year 1 2 3 4 5 6 Project A -4.5 -6.8 -6.3 21 0 0 Project B -6 -8 -3 -2 25 0 Project C -14 -8 -8 -7 -4 38 Samsung has $10 million available now and expects to receive $6 million from other projects by the end of each year (1 through 6) that would be available for the ongoing investments the following year in projects A, B, and C. By acting now, the company may participate in each project either fully, fractionally (with other development partners), or not at all. If Samsung participates at less than 100 percent, then all the cash flows associated with that project are reduced proportionally. Company policy requires ending each year with a cash balance of at least $2 million. a. Solve this model using Excel Solver (keep in mind that you must set up a linear programming model in Excel Solver). In other words, what would be the (1) maximum ending balance, and (2) optimal level of participation rate for each project? Explain using at least 250 words. b. How would the results in part a change if Samsung has $11 million available now and expects to receive $7 million from other projects by the end of each year? In other words, what would be the maximum ending balance and optimal level of participation rate for each project in a new situation? (Now, you must run a new linear programming model by replacing $10 million (current starting balance) by $11 million (new starting balance) and $6 million (current value of other project) by $7 million (new value of other project). Explain using at least 250 words, focusing on why the participation rates in part b is different from those in part a. 2. Discuss biblical principles that could be related to concepts or theory you learned from this chapter, using at least 100 words. (This is an open-ended question, and there is no definite answer)