XYZ and Co has provided the following data seeking your advice on optimum investment strategy: Net return data (in paise) Investment made at the of selected investments Атount beginning of year available (Lakh) 1 95 80 70 60 70 2 75 65 60 50 40 3 70 45 50 40 90 60 40 30 30 Мaximum Investment (Lakh) 40 50 60 60 The following additional information is also provided: (i) P, Q, R and S represent the selected investments. (ii) The company has decided to have four-year investment plan. (iii) The policy of the company is that amount invested in any year will remain so until the end of the fourth year, (iv) The values (paise) in the table represent net return on investment of 7 1 till the end of the planning horizon (for example, a rupee invested in investment P at the beginning of first year will grow to { 1.95 by the end of the fourth year, yielding a return of 95 paise).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section9.4: The Precision Tree Add-in
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26. XYZ and Co has provided the following data seeking your advice on optimum investment strategy:
Net return data (in paise)
Investment made at the
of selected investments
Amount
beginning of year
available (Lakh)
1
95
80
70
60
70
2
75
65
60
50
40
3
70
45
50
40
90
60
40
40
30
30
Маximum
Investment (Lakh) 40
50
60
60
The following additional information is also provided:
(i) P, Q, R and S represent the selected investments.
(ii) The company has decided to have four-year investment plan.
(iii) The policy of the company is that amount invested in any year will remain so until the end of the
fourth year.
(iv) The values (paise) in the table represent net return on investment of 7 1 till the end of the planning
horizon (for example, a rupee invested in investment P at the beginning of first year will grow to
{ 1.95 by the end of the fourth year, yielding a return of 95 paise).
Using the above, determine the optimum investment strategy.
(CA, November, 1996)
Transcribed Image Text:26. XYZ and Co has provided the following data seeking your advice on optimum investment strategy: Net return data (in paise) Investment made at the of selected investments Amount beginning of year available (Lakh) 1 95 80 70 60 70 2 75 65 60 50 40 3 70 45 50 40 90 60 40 40 30 30 Маximum Investment (Lakh) 40 50 60 60 The following additional information is also provided: (i) P, Q, R and S represent the selected investments. (ii) The company has decided to have four-year investment plan. (iii) The policy of the company is that amount invested in any year will remain so until the end of the fourth year. (iv) The values (paise) in the table represent net return on investment of 7 1 till the end of the planning horizon (for example, a rupee invested in investment P at the beginning of first year will grow to { 1.95 by the end of the fourth year, yielding a return of 95 paise). Using the above, determine the optimum investment strategy. (CA, November, 1996)
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