A project has the following cash flow pattern in years 0 through 5: -3000, -1000, X, 2X, 4X, 6x. If the requiredrate of return is 10%, the minimum value of "X" at which the project is accepted will be:Hint: You can use Chapter2_help spreadsheet and use goal seek method or use NPV formula to find the valueof "X" that lead to NPV = 0. Excel will not recognize "X", "2X", etc. as an input so you will need to input a valuefor first "X", create formula, and use goal seek to find the final answer.TBII UmUse the editor to format your answerWord count: 0

Step-by-Step Explanation:1. Set up the Cash Flows:Given cash flows:Year 0: -3000Year 1: -1000Year 2:…

Answered: A project has the following cash flow…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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A trust officer at the Blacksburg National Bank needs to determine how to invest $150,000 in the following collection of bonds to maximize the annual return. Bond Annual Return Maturity Risk Tax Free A 9.5% Long High Yes B 8.0% Short Low Yes C 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest at least 40% of the money in short-term issues and no more than 20% in high-risk issues. At least 25% of the funds should go in tax-free investments, and at least 45% of the total annual return should be tax free. Formulate the LP model for this problem. Create the spreadsheet model and use Solver to solve the problem. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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