The following investments are available to Finco:

a. Investment 1: For each dollar invested at time 0 (where time 0 = now), Finco receives $0. 10 at

time 1 (time 1 = one year from now, and so on), and $1.30 at time 2 (the original $1.00 plus a

return of $0.30).

b. Investment 2: For each dollar invested at time 1, Finco receives $1.60 at time 2 (the original $1.00

plus a return of $0.60).

c. Investment 3: For each dollar invested at time 2, Finco receives $1.20 at time 3 (the original $1.00

plus a return of $0.20).

d. At any time, leftover cash can be invested in Tbills, which pay 10% per year. At time 0, Finco has

$10,000. At most, $5,000 can be invested in any one of investments 1, 2, or 3. Determine how to

maximize Finco's cash on hand at time 3.

Inputs Dollars invested in Investment 1, Investment 2, Investment 3, TBills at time 0, TBills at

time 1, & TBills at time 2

Outputs: Cash inflows & Outflows at Time 0, 1, 2, & 3 from Investment 1, Investment 2,

Investment 3, TBills at time 0, TBills at time 1, & TBills at time 2.

Net Cash (Cash available + Inflows - Outflows) at time 0, 1, 2, & 3

Test to confirm that investment constraints are not violated.

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