Our pension fund model is streamlined, perhaps too much. It does all of the calculations concerning cash flows in row 20. James decides he would like to break these out into several rows of calculations: Beginning cash Amount spent on bonds (positive in 2010 only), Amount received from bonds (positive for years 2011 through 2024 only), Cash available for making pension fund payments, and, below the Amount required row, Cash left over (amount invested in the fixed interest rate). Modify the model by inserting these rows, enter the appropriate formulas, and run Solver. You should obtain the same result, but you get more detailed information.
Answer to relevant QuestionsSuppose the investments in the Barney-Jones problem sometimes require cash outlays in more than one year. For example, a $1 investment in investment B might require $0.25 to be spent in year 1 and $0.75 to be spent in year ...Solve the previous problem using the input data in the file P14_50.xlsx.In the capital budgeting model in Figure 14.40, we supplied the NPV for each investment. Suppose instead that you are given only the streams of cash ...Referring to the previous problem, if it is optimal for the company to produce sweatshirts, use SolverTable to see how much larger the fixed cost of sweatshirt machinery would have to be before the company would not produce ...The models in this section are often called combinatorial models because each solution is a combination of the various 0s and 1s, and there are only a finite number of such combinations. For the capital budgeting model in ...The stocks in the portfolio optimization model are all positively correlated. What happens when they are negatively correlated? Answer for each of the following scenarios. In each case, two of the three correlations are the ...
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