2. A company has the following short-term financing problem: Jan Feb Mar Apr May Jun Net...

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2. A company has the following short-term financing problem: Jan Feb Mar Apr May Jun Net cash flow (thousands of dollars) -150 -100 200 -200 50 100 Month The company has the following sources of funds: • a line of credit of up to $100k at an interest rate of 1% per month; in any one of the first three months, it can issue 90-day commercial paper bearing a total interest of 2% for the three-month period; excess funds can be invested at an interest rate of 0.3% per month. Can you formulate this problem as a LOP (15 Marks) ? 2. A company has the following short-term financing problem: Jan Feb Mar Apr May Jun Net cash flow (thousands of dollars) -150 -100 200 -200 50 100 Month The company has the following sources of funds: • a line of credit of up to $100k at an interest rate of 1% per month; in any one of the first three months, it can issue 90-day commercial paper bearing a total interest of 2% for the three-month period; excess funds can be invested at an interest rate of 0.3% per month. Can you formulate this problem as a LOP (15 Marks) ?

Answer rating: 100% (QA)

Yes this problem can be formulated as a Linear Optim... View the full answer