Questions from Management Science


Q: In the Barney-Jones investment model, we ran investments across

In the Barney-Jones investment model, we ran investments across columns and years down rows. Many financial analysts seem to prefer the opposite. Modify the spreadsheet model so that years go across c...

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Q: In the pension fund model, suppose there is an upper limit

In the pension fund model, suppose there is an upper limit of 60 on the number of bonds of any particular type that can be purchased. Modify the model to incorporate this extra constraint and then reo...

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Q: In the pension fund model, suppose there is a fourth bond

In the pension fund model, suppose there is a fourth bond, bond 4. Its unit cost in year 1 is $1020, it returns coupons of $70 in years 2 to 5 and a payment of $1070 in year 6. Modify the model to inc...

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Q: In the pension fund model, suppose James has been asked to

In the pension fund model, suppose James has been asked to see how the optimal solution changes if the required payments in years 6 to 15 all increase by the same percentage, where this percentage cou...

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Q: The pension fund model is streamlined, perhaps too much. It

The pension fund model is streamlined, perhaps too much. It does all of the calculations concerning cash flows in row 20. James decides he would like to break these out into several rows of calculatio...

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Q: Suppose the investments in the Barney-Jones model sometimes require cash

Suppose the investments in the Barney-Jones model sometimes require cash outlays in more than one year. For example, a $1 investment in investment B might require $0.25 to be spent in year 1 and $0.75...

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Q: In the pension fund model, if the amount of money initially

In the pension fund model, if the amount of money initially is less than the amount found by Solver, then James will not be able to meet all of the pension fund payments. Use the current model to demo...

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Q: Suppose that General Flakes decides that it shouldn’t place any more than

Suppose that General Flakes decides that it shouldn’t place any more than 10 ads on any given show. Modify the (original) advertising model appropriately to incorporate this constraint, and then reopt...

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Q: The NPV function automatically discounts each of the cash flows and sums

The NPV function automatically discounts each of the cash flows and sums the discounted values. Verify that it does this correctly for Acron’s model by calculating the NPV the long way. That is, disco...

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Q: Continuing the previous problem in a slightly different direction, continue to

Continuing the previous problem in a slightly different direction, continue to use the Money_allocated cell as a decision variable cell, and add a constraint that it must be less than or equal to any...

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