Question: Solve using linear program without TORA and explained steps Ahmed has been given the task to determine the best investment strategy for his company over

Solve using linear program without TORA and explained steps
Ahmed has been given the task to determine the best investment strategy for his company over the next three years. The amount of cash available for investment at time 0 is $100000. However, only four possible investments are available (A,B,C,D and E). The cash flows associated with investing $1 in each of the four investments are shown below: For example, $1 invested in A requires $1 in cash at time 0 and returns $0.5 at time 1 and $1 at time 2. The manager dictates that maximum $75000 be placed in any one single investment. In addition, the company has the option of investing in a mutual funds bank account with an interest rate of 8% per year. Returns from investments may be immediately reinvested. Ahmed must decide how much money he should place in each investment including the mutual fund account. Help Ahmed to formulate a linear program whose solution will maximize the amount of cash in hand at time 3. Find the optimal solution using TORA
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
