Mike has the opportunity to invest $20,000 in treasury bills, Euro bonds, municipal bondsand commercial paper. According to his financial advisor, Mike must invest no more than$10,000 in both the Euro bonds and commercial paper; at least $8,000 in both municipalbonds and treasury bill; and at most $3,000 in commercial paper. Mike's goal is tomaximize his return on investment. The expected yearly returns are summarized in thefollowing table:InvestmentTreasury BillsEuro BondsMunicipal BondsCommercial PaperExpected Return (%)4.56871.Identify the decision variables.2. Identify and formulate the objective function.3. Identify and formulate the constraints.4. Formulate the above investment problem as a Linear Programming Model.

1.Identify the decision variables.2.Identify and formulate the objective function.3.Identify and…

Answered: Mike has the opportunity to invest…

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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According to the latest unemployment report, American manufacturing added 24,000 jobs last month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant could be on the line in the face of new competition overseas. Employees at the plant, like Skip Bowman, know that his company would make more money if it would shut down the plant and move his job oversees. He says that every day he walks through the doors; he is part of the effort to keep the factory going. New Balance is the last major brand to produce athletic shoes in the U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a 100 years. The privately owned company says it is committed to its American workers. In discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan Maine). In the backdrop of plant operations, Welch interacts with workers…
It is summertime and your winter coat factory is trying to decide its production schedule and staffing level for the next season. You are forecasting a demand of 5000 coats in October, 8000 coats in November, 8000 coats in December, 12000 coats in January, 12000 coats in February, and 9000 coats in March. You want to manufacture these coats at the lowest cost possible/ The first decision you need to make is how many people to hire. Each employee will cost $2500 a month. You don’t want to hire or fire any employees mid-season in order to minimize disruptions in your factory floor. You can have employees idle if there isn’t sufficient work for them to do. Employees still need to be paid even if they are idle. An employee works 20 business days a month and takes half a day to produce one coat. The employees can also be asked to work overtime, in which case you need to pay them $70 per coat they produce. You don’t need to assume there is any capacity constraint on the number of overtime…
California MegaTech is a manufacturing company that, due to low interest rates, thinks now may be the time to finance expansion into the Los Angeles and/or San Francisco areas by building factories there. However, the company only has a $10 million capital budget. So management must decide what to build and where in order to maximize the expansion's net present value (NPV). This investment is subject to the following considerations: Net Present Value ($mil) LA SF Capital Required ($mil) LA SF Warehouse 4 Warehouse 2 Factory 8 Factory 3 The company is willing to build a factory at either or both locations. The company is willing to build no more than one factory in each location. The company is willing to build only ONE warehouse. The company is willing to build a warehouse ONLY if a factory is built at the same location. Each potential factory/warehouse has capital requirements. Each potential factory/warehouse has a positive net present value. The company is only willing to commit $10…
According to the latest unemployment report, American manufacturing added 24,000 jobs last month but in Skowhegan Maine more than 300 manufacturing jobs at a New Balance shoes plant could be on the line in the face of new competition overseas. Employees at the plant, like Skip Bowman, know that his company would make more money if it would shut down the plant and move his job oversees. He says that every day he walks through the doors; he is part of the effort to keep the factory going. New Balance is the last major brand to produce athletic shoes in the U.S. About 25% of its manufacturing is still in New England where it has operated for nearly a 100 years. The privately owned company says it is committed to its American workers. In discussions with Pat Welch, plant manager for New Balance, he says that if they were thinking about the bottom line and only the bottom line, New Balance wouldn’t be here (Skowhegan Maine). In the backdrop of plant operations, Welch interacts with workers…
Explain how we determine the optimal time to replace an existing asset with a new one.
du/courses/423127/quizzes/3325 take/questions/60963079 Table on the right shows the net cashflow (NCF) and cumulative cashflow for two projects X and Y. Answer the following questions. 1- Based on Descarte's rule of signs, what is the max. number of real ROR (i*) for project X? (put numerical number) 2- Looking at cumulative CF of project X, can we tell that it has only one positive i* value? (put "yes" Project X Project Y Year NCF Cumulative CE NCF Cumulative CF or "no") 180 -100 20,000 20,000 1 50 -130 16,000 36,000 3- Based on Descarte's rule of signs, what is the 36,000 2 50 80 50 30 25,000 25,000 max. number of real ROR (i*) for project Y? (put 4 50 20 30,000 5,000 numerical number) 4- Looking at cumulative CF of project Y, can we tell that it has only one positive i* value? (put "yes" or "no")

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