Question: Linear programming problem Investment problem Finco investment corporation must determine strategy for the firm during the next three years. At present (time 0) $100,000 is

Linear programming problem

Linear programming problem Investment problem Finco investment corporation must determine strategy for

Investment problem Finco investment corporation must determine strategy for the firm during the next three years. At present (time 0) $100,000 is available for investments A, B, C, D or E. The cash flow associated with each investment is given in table below: For example, $1 investment in investment B require a $1 cash outflow at time 1 and return 50 at time 2 and $1 at time 3 . To ensure that the company's portfolio is diversified, Finco requires that at most $75,000 be placed in any single investment. In addition to investments A-E, Finco can earn interest at 8% per year by keeping uninvested cash in money market funds. Returns from investment may be immediately reinvested. For example, the positive cash flow received from investment C at time 1 may immediately be reinvested in in investment B

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