Moneyco has $100,000 to invest at time 1 (the beginning of year 1). The cash flows associated with the five available investments are listed in the file P04_61.xlsx. For example, every dollar invested...


Moneyco has $100,000 to invest at time 1 (the beginning of year 1). The cash flows associated with the five available investments are listed in the file P04_61.xlsx. For example, every dollar invested in A in year 1 yields $1.40 in year 4. In addition to these investments, Moneyco can invest as much money each year as it wants in CDs, which pay 6% interest. The company wants to maximize its available cash in year 4. Assuming it can put no more than $50,000 in any investment, develop an LP model to help Moneyco achieve its goal.



May 22, 2022
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