Question: [ - / 4 Points ] I keep getting solver cant solve - my constraints in Solver i checked many times, please provide breakdown of
Points
I keep getting solver cant solve my constraints in Solver i checked many times, please provide breakdown of excel inputs and answer. Thank you.
tableABCDEFGHI,JKLMNSecurity,Price,Rate rs to Maturity,,,xxYear,yment $Contribu, Contribu,Total,,,,,,,,,,Total Cost,
Security
A linear programming computer package is needed.
As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments in thousands of dollars
tableYearPayment
The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings at annually and government securities at prices and rates currently quoted in The Wall Street Journal.
Hoxworth wants to develop a plan for making the annual payments by investing in the following securities par value $ Funds not invested in these securities will be placed in savings.
tableSecurityCurrent Price,Rate Years to Maturity$$
Assume that interest is paid annually. The plan will be submitted to the judge and, if approved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan.
a Use linear programming to find the minimum cash settlement necessary in $ to fund the annual payments. Round your answer to the nearest dollar.
$
b Use the dual value to determine how much more in $ Hoxworth should be willing to pay now to reduce the payment at the beginning of year to $Round your answer to the nearest dollar.
$
c Use the dual value to determine how much more in $ Hoxworth should be willing to pay to reduce the year payment to $Round your answer to the nearest dollar.
$
d Suppose that the annual payments are to be made at the end of each year. Reformulate the model to accommodate this change. How much would Hoxworth save in $ if this change could be negotiated? Round your answer to the nearest dollar. $
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