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Problem 04: Investor Doe has $10,000 to invest in four projects. The following table gives the cash flow for the four investments Project Year! Years

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Problem 04: Investor Doe has $10,000 to invest in four projects. The following table gives the cash flow for the four investments Project Year! Years -1.00 -1.00 0.00 Cash flow (51000) at the start of Year 2 Year 3 Year 4 0.50 0.30 1.80 0.60 0.20 1.50 -1.00 0.80 1.90 0.40 1.80 1.20 1.30 0.80 0.95 1.00 0.60 The information in the table can be interpreted as follows: For project 1, $1.00 invested at the start of year I will yield S. 50 at the start of year 2. $.30 at the start of year 3, $1.80 at the start of year 4, and $1.20 at the start of year 5. The remaining entries can be interpreted similarly. The entry 0.00 indicates that no transaction is taking place. Doe has the additional option of investing in a bank account that earns 6.5% annually. All funds accumulated at the end of 1 year can be reinvested in the following year. Formulate the problem as a linear program to determine the optimal allocation of funds to investment opportunities Problem 05: Model the problem as a linear programing problem that maximize the net cash HiRise Construction can bid on two 1-year projects. The following table provides the quarterly cash flow (in millions of dollars) for the two projects. Project L II January | -1.0 -3.0 Cash flow (in millions of $) at April | July 1 October 1 -3.1 -1.5 1.8 -25 1.5 1.8 December 31 5.0 2.8 HiRise has cash funds of $1 million at the beginning of each quarter and may borrow at most $1 million at a 10% nominal annual interest rate. Any borrowed money must be returned at the end of the quarter. Surplus cash can earn quarterly interest at an 8% nominal annual rate. Net accumulation at the end of one quarter is invested in the next quarter. (a) Assume that HiRise is allowed partial or full participation in the two projects. Determine the level of participation that will maximize the net cash accumulated on December 31

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