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Your corporation has just approved an 8-year expansion plan to grow its market share. The plan requires an influx of cash in each of

Your corporation has just approved an 8-year expansion plan to grow its market share. The plan requires an a. Develop a linear programming model to minimize the total dollars needed to be invested now to meet the

Your corporation has just approved an 8-year expansion plan to grow its market share. The plan requires an influx of cash in each of the 8 years. Management wants to develop a financial plan to ensure the cash needed for the expansion will be available at the beginning of each of the 8 years. The corporation has the following investment options: Security 1 2 3 Savings Account Price per unit $1,200 $1,000 $1,175 Return Rate (%) 10.255 6.7550 12.110 5.500 Years to Maturity 5 6 a. Develop a linear programming model to minimize the total dollars needed to be invested now to meet the expansion cash needs in the next 8 years. Hint: this is the objective function. Use Excel Solver, solving method: Simplex LP. b. How many units of each security 1, 2, and 3 should the corporation purchase? What is the investment amount in each security 1, 2, and 3 in year 1? c. How much should the corporation place in the savings account in each of the 8 years? d. Assuming the corporation currently has $1.8 Million available cash to invest and given the cash needs for the expansion, is the investment plan that you developed feasible? Explain your answer and provide reasoning.

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