21. A company wishes to determine an investment strategy for each of the next four years. Five investment types have been selected, investment capital has been allocated for each of the coming four years, and maximum investment levels have been established for each investment type. An assumption is that amounts invested in any year will remain invested until the end of the planning horizon of four years.

The following table summarises the data for this problem. The values in the body of the table represent net return on investment of one rupee to the end of the planning horizon. For example, a rupee invested in investment type B at the beginning of year 1 will grow to Rs 1.90 by the end of the fourth year, yielding a net return of Rs 0.90.

The objective in this problem is to determine the amount to be invested in the beginning of each year in an investment type so as to maximise the net rupee return for the four-year period.
Solve the above transportation problem and get an optimal solution. Also calculate the net return on investment for the planning horizon of four-year period. (CA, May, 1993)

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Investment type Investment made at Rupees available the beginning of year A B C D E (in '000) (Net return data) 1 0.80 0.90 0.60 0.75 1.00 500 2 0.55 0.65 0.40 0.60 0.50 600 3 0.30 0.25 0.30 0.50 0.20 750 0.15 0.12 0.25 0.35 0.10 800 Maximum rupee investment ('000) 750 600 500 800 1,000