24. Cash Flow Management. A financial manager is managing a cash fund. His invest- ment alternatives...

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24. Cash Flow Management. A financial manager is managing a cash fund. His invest- ment alternatives available are various certificates of deposit, also known as CDs, as listed in the following table: Availability Investment 1-month CD 3-month CD 6-month CD Yield 0.5% Beginning of each month 1.75% 2.3% Beginning of Months 1, 2, 3, 4 Beginning of Month 1 However, he also must ensure that sufficient funds are available to pay company expen- ditures over the next six months. The following table lists the net expenditures (in thou- sands of dollars) that the manager is obligated to cover (cash amounts in parenthesis indicate a net inflow of cash rather than outflow). Month 1 23456 Net Expenditures ($1,000s) $45 ($11) $25 ($22) $43 ($15) The cash on hand to invest at the start of month 1 is $200,000 and the minimum cash required to be available at the end of month 6 is $100,000. Develop and solve a linear program that will recommend how to invest to maximize the amount of interest income accrued over the next six months while satisfying all financial commitments. 24. Cash Flow Management. A financial manager is managing a cash fund. His invest- ment alternatives available are various certificates of deposit, also known as CDs, as listed in the following table: Availability Investment 1-month CD 3-month CD 6-month CD Yield 0.5% Beginning of each month 1.75% 2.3% Beginning of Months 1, 2, 3, 4 Beginning of Month 1 However, he also must ensure that sufficient funds are available to pay company expen- ditures over the next six months. The following table lists the net expenditures (in thou- sands of dollars) that the manager is obligated to cover (cash amounts in parenthesis indicate a net inflow of cash rather than outflow). Month 1 23456 Net Expenditures ($1,000s) $45 ($11) $25 ($22) $43 ($15) The cash on hand to invest at the start of month 1 is $200,000 and the minimum cash required to be available at the end of month 6 is $100,000. Develop and solve a linear program that will recommend how to invest to maximize the amount of interest income accrued over the next six months while satisfying all financial commitments.