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used the following cash flow schedule to determine how Jack Potts should invest his $1,000,000 in order to maximize his return at the start of

used the following cash flow schedule to determine how Jack Potts should invest his $1,000,000 in order to maximize his return at the start of year 4.

Year 1 Year 2 Year 3 Year 4
A -1 0.5 0.8
B -1 <---> 1.25
C -1 <---> <---> 1.35
D -1 1.13
E -1 <---> 1.27
M1 -1 1.08
M2 -1 1.08
M3 -1 1.08

Jack wanted at least $50,000 in the money market each year (M1, M2, M3) and no more than $500,000 in any single investment. We found an optimal objective function value of $1,449,606 (rounded to the nearest dollar), so Jack's maximum possible net gain is about $449,606 under the given parameters.

Suppose Jack changes his mind about keeping at least $50,000 in the money market each year. He wants to know the change in his net gain if he allows a minimum of $0 in all investments, including the yearly money market. (None of the other parameters change.) His maximum possible net gain is, in fact, higher, by how much, to the nearest dollar?

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