Super Sand Investment Company is deciding on future investments for the coming two years and is...

80.2K

Verified Solution

Question

Finance

Super Sand Investment Company is deciding on future investmentsfor the coming two years and is considering four bonds. Theinvestment details for the next two years are given in the tablebelow.
Investment Requirements ($)
Year 1
Year 2
Bond A
25,000
30,000
Bond B
15,000
21,000
Bond C
8000
9500
Bond D
10,000
7000
?
The net worth of these four bonds at maturity is $60,000,$40,000, $25,500, and $18,000, respectively. The firm plans toinvest $35,000 and $62,000 in Year 1 and Year 2, respectively. Youdevelop the following binary integer programming model formaximizing the net worth.
Build the model and interpret the results:

Answer & Explanation Solved by verified expert

4.1 Ratings (490 Votes)

Here the binary integer programming 01 or NoYes concept We have 4 different Bonds for Investment A B C See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Super Sand Investment Company is deciding on future investmentsfor the coming two years and is considering four bonds. Theinvestment details for the next two years are given in the tablebelow.Investment Requirements ($)Year 1Year 2Bond A25,00030,000Bond B15,00021,000Bond C80009500Bond D10,0007000?The net worth of these four bonds at maturity is $60,000,$40,000, $25,500, and $18,000, respectively. The firm plans toinvest $35,000 and $62,000 in Year 1 and Year 2, respectively. Youdevelop the following binary integer programming model formaximizing the net worth.Build the model and interpret the results:

	Investment Requirements ($)
	Year 1	Year 2
Bond A	25,000	30,000
Bond B	15,000	21,000
Bond C	8000	9500
Bond D	10,000	7000