At the beginning of year 1, you have $10,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx. Assume that any money not invested in A or B earns interest at an...


At the beginning of year 1, you have $10,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx. Assume that any money not invested in A or B earns interest at an annual rate of 8%.

a. Determine how to maximize your cash on hand in year 4.


b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem.


c. Use SolverTable to determine how a change in the yield of investment B changes the optimal solution to the problem.



May 22, 2022
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