Problem 9-07 (Algorithmic) As part of the settlement for a class action lawsuit, How ments (in thousands of dollars): Year 1 2 3 Payment 170 210 250 310 340 500 The annual payments must be made at the beginning of each year, The judge will app nvestment, will cover the annual payments. Invest ent of the funds will be limited to savings (at 3.25% ann in The Wall Street Journal Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value = $1000). Funds not invested in these securities will be placed in Security |Current Price Rate (") Years to Maturity $1075 6.55 $1000 5.125 Assume that interest in paid annually. The plan will be sul ired to fund the plan. . Use linear programming to find the minimum cash settlement necessary to fund the annual payments. F . total funds required to meet the six years of payments G1 = units of government security 1 Ga = units of government security 2 S = investment in savings at the beginning of year i Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) I+ G1 61 323 32 Round your to the nearest dollar. If an amount is zero, enter "o". Current investment required Investment in government security 1 s Investment in government security 2 5 Investment in savings for year Investment in savings for year Investment in savings for year 3 Investment in savings for year 4 Investment in savings for year 5 nivestment in savings for year 6 b. Use the dual value to determine how much more Howworth show nearest dollar. wiling to pay now to reduce the payment at the beginning of year 6 to $400,000. Round your answer to the c. Use the dual value to determine wiling to pay to luce the year 1 payment to $150,000. Round your answer to the nearest dollar. Howworth should be willing to pay anything less than $ d. Suppose that the annual payments are to be made at the end of each year, Reformulate Note: All decision variables are expressed in thousands of dollars. If required, round your answers to five decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)