Investment alternatives to maximize total annual return

Assignment Help Operation Management
Reference no: EM132297655

(Algorithmic) 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 revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans 12 Other secured loans 14 Signature loans 13 Risk-free securities 9 The credit union will have $1.4 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 $1.4 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar.

Reference no: EM132297655

Questions Cloud

Made progress and made impact : Is there a nonprofit organization, either local, national or international, that has made progress and made an impact?
Estimating time and budget requirements for projects : What are the difficulties in estimating time and budget requirements for projects?
Invests in production improvement option : IF A COMPANY invests in production improvement option D that will boost labor productivity by 50%, while its annual depreciation cost
Database to accomplish their competitive strategies : How could many companies use this database to accomplish their competitive strategies?
Investment alternatives to maximize total annual return : How should the $1.4 million be allocated to each of the loan/investment alternatives to maximize total annual return?
Describe hofstede theoretical framework : Describe Hofstede theoretical framework or cultural research approach and why it is interesting/important.
Promoting development of the core competency : Explain the advantages and disadvantages of rewarding and promoting development of the core competency.
Call center uses five customer service representatives : A telephone call center uses five customer service representatives (CSRs) during the 8:30 a.m. to 9:00 a.m. time period.
Write in four hundred words about slippery : Write in four hundred words about SLIPPERY SLOPE IN CRITICAL THINKING, Deadline in 6 hour?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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