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

  Influence of information technology in inventory management

This is the central and main part of the project which contains the actual work done during the project. The main requirement is that you need to structure the report so that it is clear and structured in a way that makes sense. Grammar and spelli..

  Are these measures independent or interdependent

what implications does that fact have for managers wanting to create and sustain a competitive advantage?

  Broom produce the mop with the new or current equipment

Mop and Broom Manufacturing has decided to produce a new type of mop. Should Mop and Broom produce the mop with the new or current equipment?

  What are some of the key issues to take into account

What are some of the key issues to take into account when considering whether or not to vertically integrate?

  What unto field needs might exist in our communities

what unto field needs might exist in our communities? Describe a use for LBS that Uber customers can benefit from using when looking for a taxi.

  What is the safety stock of these two types of laptops

What is the safety stock of these two types of laptops that the distribution center of U.S needs to hold?

  Describe the organizational relationships

Describe the organizational relationships among the IOC, the IFs, the NGBs, the NOCs, and the OCOGs, as well as their basic governance responsibilities.

  Explain the principles of responsibility and authority

Explain the principles of responsibility and authority.

  What is the medicare portion of the physician payment

What is the maximum amount the physician is allowed to charge the patient? What is the Medicare portion of the physician payment ?

  Describe personal experience of culture shock

Describe a personal experience of culture shock.

  Innovation implementation and evaluation

Select one of the organizations that your team wrote about in the Week 2 Learning Team Assignment: Innovation/Entrepreneurial Mishaps.

  Globalization and new immigration patterns changed families

In what ways have globalization and new immigration patterns changed families?

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