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Question. Mackenzie Investments is deciding on future investment for the coming two years and is considering four bonds. The investment details for the next two

Question. Mackenzie Investments is deciding on future investment for the coming two years and is considering
four bonds. The investment details for the next two years are given in the table below.
Investment Requirements ($)
Year 1
Year 2
Bond A
25,000
30,000
Bond B
15,000
21,000
Bond C
8000
9500
Bond D
10,000
7000
The net worth of these four bonds at maturity is $60,000,$40,000,$25,500, and $18,000, respectively. The firm
plans to invest at most $40,000 and $65,000 in Year 1 and Year 2, respectively. In years 1 and 2, the firm can
invest on different bonds. In order to invest on Bond B, the firm has to invest on Bond C.
Using Excel solver, develop and solve a binary integer programming model for maximizing the return on
investment (in dollars). Which bonds should be invested in years 1 and 2? How much money is invested?
What is the return on investment (in dollars)?
Please use the excel template below:
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