Problem

At the beginning of year 1, you have $10,000. Investments A and B are available; their c...

At the beginning of year 1, you have $10,000. 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 3%.

a. Determine how to maximize your cash on hand in year 4.

b. Use SolverTable to determine how a change in the year 3 yield for investment A changes the optimal solution to the problem.

c. Use SolverTable to determine how a change in the year 4 yield of investment B changes the optimal solution to the problem.

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