An investment firm wants to determine its investment strategy for the next 3 years. Investment...
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Accounting
An investment firm wants to determine its investment strategy for the next 3 years. Investment has a budget of 100 000 TL. There are 5 different investment alternatives. Same earn money by investing in cash in the stock market It is. There is a 3-year planning period. Decision variables and cash in the hands of the company at the end of the 3-year planning period The growing linear decision model is given below. x1: Money allocated to alternative A (TL) x2: Money reserved for alternative B (TL) x3: Money reserved for alternative C (TL) x4: Money allocated to the D alternative (TL) x5: Money reserved for alternative E (TL) S t: Money allocated to the stock exchange in the period t t = 0,1,2 Decision Model: x1 + x4 + x3 + S 0 = 100 000 0.5 x1 + 1.2 x3 + 1.08 S 0 = x2 + S 1 0.5 x2 + x1 +1.08 S 1 = x5 + S 2 x1 75 000 x2 75 000 x3 75 000 x4 75 000 x5 75 000 under the constraints Enb X 0 = x2 + 1.9 x4 + 1.5 x5 + 1.08 S 2 According to this information, answer the questions below. Your answers in all options According to the new data, you can find it answer using data.
a) Solve the decision model and fill the empty sections in the table below.
Variable | Value | Reduced Cost |
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Row | Slack or Surplus | Dual Price |
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| OBJ Sensitivity Ranges | ||
Variable | Down | Current | Up |
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| RHS Sensitivity Ranges | ||
Row | Down | Current | Up |
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b) Interpret the values of binary variables belonging to the first 3 constraints.
c) If the D alternative yield was 1.8 TL at the end of the 3rd year, the current solution is the best would he remain? Please explain?
d) If alternative A returns were 1.8 TL at the end of the 3rd year, the current solution is the best would he remain? Please explain?
e) If the investment restriction of 75,000 TL is removed for alternatives A, B, C and D, what kind of changes happen? Why is that?
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