Please calculate dollars invested for each year for each investment, also calculate ending balance at year 5, show answers please as this is due tonight and wanna make sure it is correct. ### Investment Analysis Spreadsheet#### OverviewThis spreadsheet is a product of investment analysis, illustrating hypothetical investment performance over six years. Key financial parameters include an initial beginning balance and a stipulated minimum balance.#### Financial Parameters- **Beginning Balance:** $60,000- **Minimum Balance:** $40,000#### Investment Matrix- **Columns:** Investments are categorized under sections A, B, C, and D.- **Rows:** Each row indicates yearly changes or returns in terms of either growth or loss.##### Investment Categories- **Investment A:** - **Year 1:** -1 - **Year 2:** -1 - **Year 3:** 1.4 - **Year 4:** 1.4 - **Year 5:** 1.4 - **Year 6:** Not specified- **Investment B:** - **Year 1:** -1 - **Year 2:** -1 - **Year 3:** Not involved (cells empty) - **Year 4:** 1.7 - **Year 5:** 1.7 - **Year 6:** Not specified- **Investment C:** - **Year 1:** -1 - **Year 2:** Not involved - **Year 3:** Not involved - **Year 4:** 1.7 - **Year 5:** 1.9 - **Year 6:** Not specified- **Investment D:** - **Year 1:** -1 - **Year 2:** Not involved - **Year 3:** Not involved - **Year 4:** Not involved - **Year 5:** Not involved - **Year 6:** 1.3All specified data reflect potential percentages or decimal representations of returns or losses. Cells highlighted in gray suggest a focus for analysis within their respective years and investment categories. **Exercise: Investment Planning for Retirement**Al Ferris has $20,000 to invest with the aim of accumulating enough funds to purchase a retirement annuity in five years. Following advice from his financial advisor, he has been presented with four different fixed-income investment options, labeled as A, B, C, and D. These investments are available at the start of each of the next five years (years 1 to 5).**Investment Options:**- **Investment A:** Each dollar invested at the beginning of a year will return $1.40 two years later ($0.40 profit). This suits immediate reinvestment.- **Investment B:** Each dollar invested at the start of a year will return $1.70 three years later.- **Investment C:** Available one time, allowing each dollar invested at the start of year 2 to return $1.90 at the end of year 5.- **Investment D:** Available one time, allowing each dollar invested at the start of year 5 to yield $1.30 at the end of year 5.**Tasks:**a. Identify the investment strategy that will maximize the funds accumulated by the start of year 6.b. Calculate the ending balance at the end of year 5.**Instructions:**Formulate and solve a linear programming model using a spreadsheet.**Investment Table Entry:**| **Investment A** | **Investment B** | **Investment C** | **Investment D** ||------------------|------------------|------------------|------------------|| **Year 1** | **Year 1** | **Year 2** | **Year 5** || **Year 2** | **Year 2** | | || **Year 3** | **Year 3** | | || **Year 4** | | | || **Year 5** | | | |**Note:** Ensure all cells are filled. Enter zero (0) where necessary.For further calculations, refer to the Excel Data File.

Decision variableLet At, Bt, Ct, and Dt be the amount invested in investment A, B, C, and D,…

Al Ferris has $20,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, and D. Investments A and B are available at the beginning of each of the next five years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) two years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5.

Al Ferris has $20,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, and D. Investments A and B are available at the beginning of each of the next five years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) two years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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