Question: Solve it with spreadsheet modeling thanks A financial planner trying to determine how to invest 1 million dollars for one of his clients. The cash

Solve it with spreadsheet modeling thanks

A financial planner trying to determine how to invest 1 million dollars for one of his clients. The cash flows for the five investments under consideration are summarized in the following table:

Summary of cash in-flows and out-flows (at the beginning for year)

Year

A

B

C

D

E

1

-1.0

0

-1.0

0

-1.0

2

+0.4

-1.0

0

0

0

3

+1.02

0

0

-1.0

+1.3

4

0

+1.4

+1.6

+1.2

0

For example, if the financial planner invests $1 in investment A at the beginning of year 1, he will receive $0.4 at the beginning of year 2 and another $1.02 at the beginning of year 3. Alternatively, he can invest $1 in investment B at the beginning of year 2 and receive $1.4 at the beginning of year 4. Entries of 0 in the table (above) indicate times when no cash in-flows or out-flows can occur. Also, at the beginning of each year, the financial planner may also place any or all of the available money in a money market account that is expected to yield 10% per year.

How should the financial planner invest if he wants to maximize the amount of money available to his client at the end of year 4?

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