Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars): Year 1 2 3 4 5 6 Payment 180 220 245 300 320 480 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 3.75% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value = $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity 1 $1065 6.25 3 2 $1000 5.225 4 Assume that interest is paid annually. The plan will be submitted to the judge and, if approved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan. Use linear programming to find the minimum cash settlement necessary to fund the annual payments. Let F = total funds required to meet the six years of payments G1 = units of government security 1 G2 = units of government security 2 Si = investment in savings at the beginning of year i Note: All decision variables are expressed in thousands of dollars. If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Min 1 F s.t. 1 F + -1.065 G1 + -1 G2 + - S1 = 180 .0625 G1 + .05225 G2 + 1.0375 S1 + - S2 = 220 .0675 G1 + .05225 G2 + 1.0375 S2 + - S3 = 245 1.0675 G1 + .05525 G2 + 1.0375 S3 + - S4 = 300 1.05525 G2 + 1.0375 S4 + - S5 = 320 1.0375 S5 + 0 S6 = 480 A. Round your answer to the nearest dollar. Current investment required $ Investment in government security 1 $ Investment in government security 2 $ Investment in savings for year 1 $ Investment in savings for year 2 $ Investment in savings for year 3 $ Investment in savings for year 4 $ Investment in savings for year 5 $ Investment in savings for year 6 $ B.Use the shadow price to determine how much more Hoxworth should be willing to pay now to reduce the payment at the beginning of year 6 to $400,000. Round your answer to the nearest dollar. ? $ C. Use the shadow price to determine how much more Hoxworth should be willing to pay to reduce the year 1 payment to $150,000. Round your answer to the nearest dollar. Hoxworth should be willing to pay anything less than $? . D. Suppose that the annual payments are to be made at the end of each year. Reformulate the model to accommodate this change. Note: All decision variables are expressed in thousands of dollars. If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Min ()F s.t. 1)() F +() G1 +() G2 + ()S1 =() 2) ()G1 + ()G2 + ()S1 +() S2 = () 3)() G1 +() G2 +() S2 +() S3 =() 4)() G1 + ()G2 + ()S3 + ()S4 =() 5)() G2 +() S4 + ()S5 =() 6) ()S5 + ()S6 =() 7) ()S6 + ()S7 =() How much would Hoxworth save if this change could be negotiated? Round your answer to the nearest dollar. $() Do ABCD, For D, answer all ().
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 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..
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..
An analysis of the holding costs, including the appropriate annual holding cost rate.
Briefly explain Evolution and contributor of Operations management.
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 of DVD players. Determine the appropriate reorder point.
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.
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 showing the change of your unit from medical/surgical staffing to oncology staffing.
Ccompare the effectiveness of different leadership styles in different organizations
Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd