Finco has the following investments available:Investment A For each dollar invested at time 0, we receive $0.10 at time 1 and $1.30 at time 2. (Time 0 =now;time= 1 one year from now; and so on.)Investment B For each dollar invested at time 1, we receive $1.60 at time 2.Investment C For each dollar invested at time 2, we receive $1.20 at time 3.At any time, leftover cash may be invested in T-bills, whichpay 10% per year. At time 0, we have $100. At most, $50can be invested in each of investments A, B, and C. Formulate an LP that can be used to maximize Finco’s cash onhand at time 3.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Finco has the following investments available:
Investment A For each dollar invested at time 0, we receive $0.10 at time 1 and $1.30 at time 2. (Time 0 =now;
time= 1 one year from now; and so on.)
Investment B For each dollar invested at time 1, we receive $1.60 at time 2.
Investment C For each dollar invested at time 2, we receive $1.20 at time 3.
At any time, leftover cash may be invested in T-bills, which
pay 10% per year. At time 0, we have $100. At most, $50
can be invested in each of investments A, B, and C. Formulate an LP that can be used to maximize Finco’s cash on
hand at time 3.

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