What is the projected total annual return

Assignment Help Operation Management
Reference no: EM131150142

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return are as follows:

type of loan annual rate of return (%)

auto loan 9

furniture loan 11

other secured loan 12

signature loan 13

risk free securities 10

The credit union will have $2.3 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments:

• Risk-free securities may not exceed 30% of the total funds available for investment.

• Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).

• Furniture loans plus other secured loans may not exceed the automobile loans.

• Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

How should the $2.3 million be allocated to each of the loan/investment alternatives to maximize total annual return?

type of loan fund allocation

auto loans $

Furniture loan $

other secured loans $

signature loans $

risk free securities $

What is the projected total annual return?

Annual Return = $_________

Reference no: EM131150142

Questions Cloud

Analyze the competitive advantage of each company : Evaluate the internal and external environments of each company using an environmental scan. Analyze the competitive advantage of each company and Evaluate the strategies each company uses to create value and gain competitive advantage
What does the phrase you get what you measure refer to : What does the phrase you get what you measure refer to? Give an example of a performance measure you’ve come across in your experience (work, school, or home) and comment on the strengths and weaknesses of that measure.
How do you think agesim affects older adults : What is one example of Agesim that you have witnessed in healthcare? How do you think agesim affects older adults? What do you think nurses can do to stop agesim in healthcare settings?
What will the pitching moment of the prototype wing : what will the pitching moment of the prototype wing be if it is flying at the same Mach number at 8-km standard altitude ?
What is the projected total annual return : The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. Risk-..
What are the pros and cons of anglo americans adoption : What are the pros and cons of Anglo American's adoption of an aggressive strategy in combating HIV/AIDS strategy? What recommendations would you give the company concerning its HIV/AIDS policy?
Who are the stakeholders in this case : Who are the stakeholders in this case? Who would be hurt by rate fixing? What responsibilities did senior executive at Barclays have to prevent fraud in circumstances that, in Timothy Geithner's words, "created not just the incentive to underrepor..
Is the vibration due to the road or to vortex shedding : The radio antenna on a car begins to vibrate wildly at 8 Hz when the car is driven at 45 mi/h over a rutted road that approximates a sine wave of amplitude 2 cm and wavelength λ= 2.5 m. The antenna diameter is 4 mm. Is the vibration due to the ro..
Describe two traits that represent a sustainable society : Explain how human activities can cause an imbalance in biogeochemical cycling and lead to problems such as cultural eutrophication and fish kills. Describe two traits that represent a sustainable society and two traits of a non-sustainable society.

Reviews

Write a Review

 

Operation Management Questions & Answers

  Risk assessment methodologies

Compare and contrast the following risk assessment methodologies: (a) the Delphi technique, (b) sensitivity analysis, and (c) Monte Carlo simulation. Provide a rationale for your response.

  Analyze and evaluate marx''s contribution to sociological

Analyze and evaluate Marx's contribution to sociological theory. Keep in mind that Marx's central concern was a critical analysis of capitalist society, and include the following concepts in your discussion:

  Describe the four primary concerns for product design

Name and briefly describe the four primary concerns for product design in a DFMA program.

  What price should it set

Why will a monopolist's output increase if the government forces it to lower its price? If the government wants to set a price ceiling that maximizes the monopolist's output, what price should it set?

  Consider workplace safety and effects of lateral violence

Consider workplace safety and the effects of lateral violence, occupational hazards, and stress in relationship to patient safety, workplace safety, health care practice, and nursing staff retention rates. In your discussion board post, please identi..

  Equivalent deterministic linear program

Suppose that in tomato season there are three canneries under one management that ship cases of canned tomatoes to five warehouses. The number of cases processed at each cannery during the tomato season is known in advance as shown in the table below..

  Outline a strategy that you would employ to change culture

You have recently been hired as the police chief in Brady City. The city council fired the former chief due to his inability to address the ongoing poor performance within the department and citizen complaints about police officer conduct. Outline..

  Explain how would you gauge peter''s achievement orientation

How would you gauge Peter's achievement orientation. What are some of the needs not being met for Peter Gibbons at Initech. What changes might improve Peter's motivation

  Which of following is true about modern business corporation

The current societal expectation is that a corporation should just make money legally and not worry about the local community or society or ethics.

  Efficiency considering adjustments changeover of patterns

The stamping operation takes 1 minute per T-shirt, and the stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of patterns, and unavoidable downtime. How many stamping machines are required?

  Supply chain business processes

Is it necessary to have internal performance measures for each of the Supply Chain business processes? Why or why not? Please write in your own words

  Strategies for organization to increase employee motivation

Create a 6 - 8 slide Microsoft PowerPoint presentation analyze and interpret how employee motivation affects organizational behavior as well as three strategies an organization can do to increase employee motivation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd