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Please Help I am trying to study and don't understand how to do this in Excel. Can you show me how? As part of the
Please Help I am trying to study and don't understand how to do this in Excel. Can you show me how?
As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): The annual payments must be made at the beginning of each year. The judge will approve an amount that, investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4.25% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value =$1000 ). Funds not invested in these securities will be placed in savings. Assume that interest is paid annually. The plan will be submitted to the judge and, if approved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan. a. Use linear programming to find the minimum cash settlement necessary to fund the annual payments. Let F= total funds required to meet the six years of payments G1= units of government security 1 G2= units of government security 2 Si= investment in savings at the beginning of year i Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank. (Example: -300) Round your answer to the nearest dollar. If an amount is zero, enter " 0 ". b. Use the dual value to determine how much more Hoxworth should be willing to pay now to reduce the payment at the beginning of year 6 to $400,000. Round your answer to the nearest dollar. c. Use the dual value to determine how much more Hoxworth should be willing to pay to reduce the year 1 payment to $150,000. Round your answer to the nearest dollar. Hoxworth should be willing to pay anything less than $ d. Suppose that the annual payments are to be made at the end of each year. Reformulate the model to accommodate this change. Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: 300 ) How much would Hoxworth save if this change could be negotiated? Round your answer to the nearest dollar. \$ As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): The annual payments must be made at the beginning of each year. The judge will approve an amount that, investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4.25% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value =$1000 ). Funds not invested in these securities will be placed in savings. Assume that interest is paid annually. The plan will be submitted to the judge and, if approved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan. a. Use linear programming to find the minimum cash settlement necessary to fund the annual payments. Let F= total funds required to meet the six years of payments G1= units of government security 1 G2= units of government security 2 Si= investment in savings at the beginning of year i Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a sign before the blank. (Example: -300) Round your answer to the nearest dollar. If an amount is zero, enter " 0 ". b. Use the dual value to determine how much more Hoxworth should be willing to pay now to reduce the payment at the beginning of year 6 to $400,000. Round your answer to the nearest dollar. c. Use the dual value to determine how much more Hoxworth should be willing to pay to reduce the year 1 payment to $150,000. Round your answer to the nearest dollar. Hoxworth should be willing to pay anything less than $ d. Suppose that the annual payments are to be made at the end of each year. Reformulate the model to accommodate this change. Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: 300 ) How much would Hoxworth save if this change could be negotiated? Round your answer to the nearest dollar. \$Step by Step Solution
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