Practice_2_Q8_solution

# Practice_2_Q8_solution - Question 8 Finco Investment I...

• Notes
• 2

This preview shows pages 1–2. Sign up to view the full content.

Question 8: Finco Investment I inserted comments in cells C15, C23, and D A) Decision Variable: How much to invest in each investment --- A,B,C,D, and E B) LP Formulation 0 1 2 Investment A -\$1.00 \$0.50 \$1.00 Investment B \$0.00 -\$1.00 \$0.50 Investment C -\$1.00 \$1.20 \$0.00 Investment D -\$1.00 \$0.00 \$0.00 Investment E \$0.00 \$0.00 -\$1.00 Cash on Hand at the beginning 100000 \$0.00 \$0.00 Time 0 Time 1 Time 2 Investment A 60000 -\$60,000.00 \$30,000.00 \$60,000.00 Investment B 30000 \$0.00 -\$30,000.00 \$15,000.00 Investment C 0 \$0.00 \$0.00 \$0.00 Investment D 40000 -\$40,000.00

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: \$0.00 \$0.00 Investment E 75000 \$0.00 \$0.00-\$75,000.00 Cash Position at the end \$0.00 \$0.00 \$0.00 Notice: C22, D22, and E22 must be non-negative Constraints: Total investment A \$60,000.00 <= 75000 Total investment B \$30,000.00 <= 75000 Total investment C \$0.00 <= 75000 Total investment D \$40,000.00 <= 75000 Total investment E \$75,000.00 <= 75000 D23. 3 \$0.00 \$1.00 \$0.00 \$1.90 \$1.50 \$0.00 Time 3 \$0.00 \$30,000.00 \$0.00 \$76,000.00 \$112,500.00 \$218,500.00 e. (why?)...
View Full Document

• Summer '07
• Vaitsos
• Management, total investment, Investment B Investment C Investment D Investment E

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern