Question: please solve the parts A , B and C i will give full feedback with thumbsup urgent H 9 3 A major public utility in
please solve the parts A , B and C
H 9 3 A major public utility in the Gulf has planned the construction of several new major plants 5, 10, and 20 years from now to meet the 4 needs of the growing population in the region they serve. To cover the construction costs, the financial manager will be leading the 5 efforts to invest some of the company's money now to meet the required cash flow for these future major construction projects. The 6 financial manager has the options of purchasing only three financial assets. Each unit of Asset-1 costs $imillion, each unit of Asset-2 7 costs $2 milion, and each unit of Asset-3 costs $3 million. 8 These three assets produce income 5, 10, and 20 years from now, and that income is needed to cover the minimum cash flow w requirements in those years, as shown in the below table. 11 12 Income per Unit of Asset ($ million) Year Minimum Cashflow 13 Asset 1 Asset 2 Asset 3 Required 14 5 7 2 $1.6 billion 15 10 3 5 $400 million 16 20 3 5 9 $1.2 billion 17 18 The financial manager wishes to determine the mix of investments in these three assets that will cover the cash flow requirements 19 while minimizing the total amount invested. 20 21 (a) Provide a complete algebraic model for this case. (b) Provide a complete spreadshet model for this case and solve it. 22 (c) Comment on the obtained results using your own words. 23 24 Make sure that all formulas and Solver param 25 9 8 A A A A H 9 3 A major public utility in the Gulf has planned the construction of several new major plants 5, 10, and 20 years from now to meet the 4 needs of the growing population in the region they serve. To cover the construction costs, the financial manager will be leading the 5 efforts to invest some of the company's money now to meet the required cash flow for these future major construction projects. The 6 financial manager has the options of purchasing only three financial assets. Each unit of Asset-1 costs $imillion, each unit of Asset-2 7 costs $2 milion, and each unit of Asset-3 costs $3 million. 8 These three assets produce income 5, 10, and 20 years from now, and that income is needed to cover the minimum cash flow w requirements in those years, as shown in the below table. 11 12 Income per Unit of Asset ($ million) Year Minimum Cashflow 13 Asset 1 Asset 2 Asset 3 Required 14 5 7 2 $1.6 billion 15 10 3 5 $400 million 16 20 3 5 9 $1.2 billion 17 18 The financial manager wishes to determine the mix of investments in these three assets that will cover the cash flow requirements 19 while minimizing the total amount invested. 20 21 (a) Provide a complete algebraic model for this case. (b) Provide a complete spreadshet model for this case and solve it. 22 (c) Comment on the obtained results using your own words. 23 24 Make sure that all formulas and Solver param 25 9 8 A A A A
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