Maureen Laird is the chief financial officer for the Alva Electric Co., a major public utility in
Question:
Maureen wishes to determine the mix of investments in these assets that will cover the cash-flow requirements while minimizing the total amount invested.
(a) Formulate a linear programming model for this problem.
(b) Display the model on a spreadsheet.
(c) Use the spreadsheet to check the possibility of purchasing 100 units of Asset 1, 100 units of Asset 2, and 200 units of Asset 3. How much cash flow would this mix of investments generate 5, 10, and 20 years from now? What would be the total amount invested?
(d) Use Solver to solve the model by the simplex method.
(e) Use ASPE and its Solver to solve the model by the simplex method.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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