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  • Larry Fredendall's Sinking Fund: A B C D A B C D A

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    Larry Fredendall has created a sinking fund to invest in four different investments (A, B, C, D) over a six year period. The objective is to maximize returns while meeting cash flow constraints in years 2 through 6. The document shows the amounts invested in each investment for each year, expected returns for each investment in future years, and constraints that must be met for minimum cash flows in years 2 through 6.

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    LP Solution

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    3-12

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    Larry Fredendall has created a sinking fund to invest in four different investments (A, B, C, D) over a six year period. The objective is to maximize returns while meeting cash flow constraints in years 2 through 6. The document shows the amounts invested in each investment for each year, expected returns for each investment in future years, and constraints that must be met for minimum cash flows in years 2 through 6.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    Download as xls, pdf, or txt
    8 views2 pages

    Larry Fredendall's Sinking Fund: A B C D A B C D A

    Uploaded by

    o3283
    Larry Fredendall has created a sinking fund to invest in four different investments (A, B, C, D) over a six year period. The objective is to maximize returns while meeting cash flow constraints in years 2 through 6. The document shows the amounts invested in each investment for each year, expected returns for each investment in future years, and constraints that must be met for minimum cash flows in years 2 through 6.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 2

    Larry Fredendall's Sinking Fund

    A1

    $ Invested
    Objective coeff
    Constraints:
    Y2 cash flow
    Y3 cash flow
    Y4 cash flow
    Y5 cash flow
    Y6 cash flow
    Y1 risk
    Y2 risk
    Y3 risk
    Y4 risk
    Y5 risk

    B1

    C1

    D1

    A2

    B2

    C2

    D2

    A3

    Inv A Inv B Year


    Inv C
    Inv D
    Inv A Inv B Inv C Inv D Inv A Year
    Year 1
    1
    Year 1
    Year 1 Year 2 Year 2 Year 2 Year 2
    3
    0.00 61,064.11 3,804.66 8,445.95 0.00
    0.00
    0.00
    0.00 38,227.50
    1
    1
    1
    1
    1.05

    -1
    1.05

    1.13
    1.28

    -1

    -1

    -1
    -1
    1.05

    1.13
    1.40

    1.28
    1.40

    1
    1
    1

    1
    1
    1
    1

    1
    1
    1

    1
    1
    1
    1

    B3

    C3

    A4

    B4

    A5

    Inv B Year Inv C Inv A Inv B Year Inv A


    3
    Year 3 Year 4
    4
    Year 5
    10,774.93 0.00
    0.00 23,008.85 0.00
    $73,314.71

    -1

    -1
    -1
    1.05

    1.13
    1.28

    1
    1
    1

    -1
    1.13

    -1
    1.05

    0.00 =
    20000.00 =
    22000.00 =
    24000.00 =
    26000.00 =
    12250.61 <=
    12250.61 <=
    12250.61 <=
    8445.95 <=
    0.00 <=
    LHS
    Sign

    0.00
    20000.00
    22000.00
    24000.00
    26000.00
    14662.94
    14662.94
    12250.61
    8445.95
    4601.77
    RHS

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