At the beginning of year 1, you have $10,000. Investments A and B are available; their cash

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At the beginning of year 1, you have $10,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx. Assume that any money not in-vested in A or B earns interest at an annual rate of 3%.

a. Determine how to maximize your cash on hand in year 4.

b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem.

c. Use SolverTable to determine how a change in the year 4 yield of investment B changes the optimal solution to the problem.

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Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

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Question Posted: Nov 09, 2018 05:49 AM

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At the beginning of year 1, you have $10,000. Investments A and B are available; their cash

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Model Investing in two investments Range names used CashAvail Sheet1B22D22 Data on investments EndCash Sheet1E22 Invest A Invest B Invested Sheet1B16C16 Year of investment ...View the full answer

Practical Management Science

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