Question

At the beginning of year 1, you have $10,000. Investments A and B are available; their cash flows are shown in the file S14_84.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 at the beginning of year 4.
b. Use SolverTable to determine how a change in the year 2 returns for investment A changes the optimal solution to the problem.
c. Use SolverTable to determine how a change in the year 3 return of investment B changes the optimal solution to the problem.



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  • CreatedApril 01, 2015
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