At the beginning of year 1, you have $100,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx. Assume that any money not invested in A or B earns interest at an annual rate of 2.5%. image a. Determine how to maximize your cash on hand in year 4. You can maximize cash on hand in year 4 to $ , by investing s in A and s in B. b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem. Round your answer to the nearest cent. Except when this return is Select than s the same split continues to be optimal. c. Use SolverTable to determine how a change in the year 4 yield of investment B changes the optimal solution to the problem. Round yo answer to the nearest cent. Except when this return is Select than s the same split continues to be optimal.

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At the beginning of year 1, you have $100,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx.
Assume that any money not invested in A or B earns interest at an annual rate of 2.5%.
image 1
a. Determine how to maximize your cash on hand in year 4.
You can maximize cash on hand in year 4 to $
by investing $
in A and s
b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem. Round
your answer to the nearest cent.
Except when this return is Select than $
the same split continues to be optimal.
c. Use SolverTable to determine how a change in the year 4 yield of investment B changes the optimal solution to the problem. Round your
answer to the nearest cent.
Except when this return is Select than
the same split continues to be optimal.
in B.
Transcribed Image Text:At the beginning of year 1, you have $100,000. Investments A and B are available; their cash flows are shown in the file P04_62.xlsx. Assume that any money not invested in A or B earns interest at an annual rate of 2.5%. image 1 a. Determine how to maximize your cash on hand in year 4. You can maximize cash on hand in year 4 to $ by investing $ in A and s b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem. Round your answer to the nearest cent. Except when this return is Select than $ the same split continues to be optimal. c. Use SolverTable to determine how a change in the year 4 yield of investment B changes the optimal solution to the problem. Round your answer to the nearest cent. Except when this return is Select than the same split continues to be optimal. in B.
1 Investment data
2
3
4
5
6
7
8
9
Year
1234
3
A
-$1.00
$0.50
$0.80
$0.20
image 2
B
$0.00
-$1.00
$0.80
$0.70
Transcribed Image Text:1 Investment data 2 3 4 5 6 7 8 9 Year 1234 3 A -$1.00 $0.50 $0.80 $0.20 image 2 B $0.00 -$1.00 $0.80 $0.70
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