A businessman is considering an investment project. The project has a lifetime of
four years, with cash flows of $$$ and $
in each of the four years, respectively. At any time he may borrow funds at the
rates of and total for or periods, respectively. He may
loan funds at per period. He calculates the present value of a project as
the maximum amount of money he would pay now, to another party, for the
project, assuming that he has no cash on hand and must borrow and lend to pay
the other party and operate the project while maintaining a nonnegative cash
balance after all debts are paid. Formulate the project valuation problem in a
linear programming framework. And describe the decision variables
