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please help with this, i need it urgently, thanks chegg community!!! Jenpack Corporation established an early voluntary retirement program. At the close of the voluntary
please help with this, i need it urgently, thanks chegg community!!!
Jenpack Corporation established an early voluntary retirement program. At the close of the voluntary sign-up period, 89 employees had elected early retirement. As a result of these early retirements, the company incurs the following obligations over the next 9 years. Cash requirements are due at the beginning of each year. 1 2. 3 4 5 6 7 8 9 Year Cash Requirement 8500 9900 11000 12000 12000 10000 10800 11000 12000 The corporate treasurer is assigned to determine how much money must be set aside today to meet the 9-year financial obligations as they come due. The financing plan for the retirement program includes investments in government bonds as well as savings. Note that, the investment in government bonds can only take place in the first year and the bonds will be held until maturity. The investments in government bonds are limited to three choices as follow: Bond 1 2 3 Price (S) 1050 1280 1450 Rate(%) 7,5 9.9 12.8 Years to Maturity 5 7 8 The government bonds have a par value of $1000, which means that even with different prices each bond pays $1000 at maturity. The rates shown are based on the par value. For purposes of planning, the corporate treasurer assumed that any funds not invested in bonds will be placed in savings and earn interest at an annual rate of 4%. Formulate a linear programming model that will minimize the total dollars needed to meet the retirement plan's 9-year obligation [25 marksStep by Step Solution
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