A company proposes to invest in two divisible projects which are expected to generate the following cash flows.   Cash flows Year Project A Project B
1 10,000 10,000
2 60,000 30,000
Additional information
1.       The cost of capital applicable to both projects is 12%
2.       Project A requires sh. 20,000 and Project B 10,000 initial investment. 3.       The funds available are restricted as follows;
Years Cash available
0 1,000,000
1 800,000
4.       Funds not utilized one year will not be available in the subsequent years. Required;         
i.            Formulate a linear programming model to solve the above problem.        ii.            Solve the problem graphically and comment on the proportion of investing on the two projects.​