Question

In: Accounting

A senior executive of a public sector company recently quit his job under the VRS with...

A senior executive of a public sector company recently quit his job under the VRS with a hefty packet of INR 1 Crore. Ms. Dhana-chor Chit Fund Company has offered the following investment scheme for the benefit of such retired people: "Invest a certain sum (in lakhs of rupees) in any month; invest half of that amount in the next month. In the subsequent month, one would get twice the amount invested originally in the first month”. This scheme is available only for the next six months (Encashment is possible on 181st day). Returns received at the end of any month can be used immediately for reinvesting either as a fresh investment or as a follow-up investment. Develop a mathematical model to optimize the investment strategy.

Solutions

Expert Solution

INR stands for Indian Rupees

So, In India, They use concept of Lakhs and Crores instead of Millions and Billions.

For Understanding

1 Million = 10 Lakh

1 Billion = 100 Crores

1 Crore = 100 Lakh

and Investment is to be done in lakhs

So all figures onwards are in lakhs

Let Y(t) = Investment on the 0th,30th, 60th, 90th, 120th 150th day respectively (where t = 1,2,3,4,5)

Now, the cash outflow on 0th,30th, 60th, 90th, 120th-day shall not exceed cash in hand

Now Moving forward to Day 180 on which we have to maximize the investments.

Mathematical model to maximize the Investment strategy:

Hope it helps you in your studies. Kindly give a thumbs up if you like it. ?


Related Solutions

A senior executive of a public sector company recently quit his job under the VRS with...
A senior executive of a public sector company recently quit his job under the VRS with a hefty packet of INR 1 Crore. Ms. Dhana-chor Chit Fund Company has offered the following investment scheme for the benefit of such retired people: "Invest a certain sum (in lakhs of rupees) in any month; invest half of that amount in the next month. In the subsequent month, one would get twice the amount invested originally in the first month”. This scheme is...
A senior executive of a public sector company recently quit his job under the VRS with...
A senior executive of a public sector company recently quit his job under the VRS with a hefty packet of INR 1 Crore. Ms. Dhana-chor Chit Fund Company has offered the following investment scheme for the benefit of such retired people: "Invest a certain sum (in lakhs of rupees) in any month; invest half of that amount in the next month. In the subsequent month, one would get twice the amount invested originally in the first month”. This scheme is...
Jim who recently quit his job after receiving a very large bonus payment is interested in...
Jim who recently quit his job after receiving a very large bonus payment is interested in forming his own business. He is not sure how to begin and he has asked you to help him identify and analyze what company formation options he has available. He can set up his business in the UK, Canada or the USA, he will go where you decide. Please advise him on what it means to be unincorporated, the advantages and disadvantages Then explain...
Jim who recently quit his job after receiving a very large bonus payment is interested in...
Jim who recently quit his job after receiving a very large bonus payment is interested in forming his own business. He is not sure how to begin and he has asked you to help him identify and analyze what company formation options he has available. He can set up his business in the UK, Canada or the USA, he will go where you decide. a. Please advise him on what it means to be unincorporated, the advantages and disadvantages b....
In 2009, David Tucker quit his job at a large beer company to start his own...
In 2009, David Tucker quit his job at a large beer company to start his own brewery, Tempe Microbrewery (TM). His family supported his decision and invested in the business along with David. TM began operations on January 10, 2010 and now produces four labels of specialty beers (Saguaro pale Ale, Bisbee Bock, Ocotillo Amber Pilsner, and Sedona Stout). An explanation of the beer-making process is shown in Appendix A. In much of the United Sates (including Arizona), beer is...
In 2009, David Tucker quit his job at a large beer company to start his own...
In 2009, David Tucker quit his job at a large beer company to start his own brewery, Arizona Microbrewery, Inc. (AMI). His family supported his decision and invested in the business along with David. AMI began operations on January 10, 2010 and now produces four labels of specialty beers (Saguaro Pale Ale, Bisbee Bock, Ocotillo Amber Pilsner, and Sedona Stout).   In much of the United States (including Arizona), beer is sold in a “three-tier” system. Under this system, beer is...
In 2009, David Tucker quit his job at a large beer company to start his own...
In 2009, David Tucker quit his job at a large beer company to start his own brewery, Tempe Microbrewery (TM). His family supported his decision and invested in the business along with David. TM began operations on January 10, 2010 and now produces four labels of specialty beers (Saguaro pale Ale, Bisbee Bock, Ocotillo Amber Pilsner, and Sedona Stout). An explanation of the beer-making process is shown in Appendix A. In much of the United Sates (including Arizona), beer is...
In 2009, David Tucker quit his job at a large beer company to start his own...
In 2009, David Tucker quit his job at a large beer company to start his own brewery, Tempe Microbrewery (TM). His family supported his decision and invested in the business along with David. TM began operations on January 10, 2010 and now produces four labels of specialty beers (Saguaro pale Ale, Bisbee Bock, Ocotillo Amber Pilsner, and Sedona Stout).   In much of the United Sates (including Arizona), beer is sold in a “three-tier” system. Under this system, beer is manufactured...
1 .Recently, Shane started his graduate position in the Australian public sector and his starting annual...
1 .Recently, Shane started his graduate position in the Australian public sector and his starting annual salary is $60,000, while his dad’s starting salary for similar position 28 years ago was $20,000. Shane is seen bragging to his friends that he is earning three times more than his dad did 28 years ago. Is Shane’s claim valid? Explain your answer. 2.b. According to the Tasmanian Chamber of Commerce and Industry’s 2018 report, labour productivity in Tasmania is 22% below national...
you are the senior on an audit of Teleko, a large public company. the company recently...
you are the senior on an audit of Teleko, a large public company. the company recently completed an acquisition of its fifth largest competitor. the competitor is known for historical accounting manipulations related to purchasing such as under- or over-statement of liabilities and expenses. list at least 6 most relevant analytical procedures that can be used to test purchasing-related accounts. what potential misstatements are indicated by each of these analytical procedures?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT