Solution maximizes the npv obtained from these investments

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Reference no: EM131994874

Two investments with varying cash flows (in thousands of dollars) are available, as shown in Table. At time 0, $10,000 is available for investment, and at time 1, $7,000 is available.

Investment 0 1 2 3

A -6 -5 7 9

B -8 -3 9 7

Assuming that r = 0.40 (4%), set up an LP whose solution maximizes the NPV obtained from these investments. Graphically find the optimal solution to the LP.

Reference no: EM131994874

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