Optimization Solutions - Finance Examples

Corporate Finance Examples

This free workbook contains seven example models from the area of corporate finance.  Click the model names to display each worksheet model in your browser.

You can use the worksheet that most closely models your situation as a starting point.  Solving your real problem may require "scaling up" the model to include more variables and constraints -- but rest assured that you can solve your full-size problem with the power of our Excel Solver upgrades, even if it requires hundreds of thousands of variables!

To download and save the workbook, right-click Finance Examples and select Save Target As... from the context menu.  You can then actually solve these small example models in Excel, using the standard Excel Solver, Premium Solver Pro or Premium Solver Platform.

• Finance - Working Capital Management:  Invest in 1-month, 3-month, and 6-month CDs to maximize interest while meeting cash requirements
• Budget1 and Budget2 - Capital Budgeting:  Choose a combination of capital projects to maximize overall  NPV (Net Present Value)
• Invent1 and Invent2 - Inventory Management:  Compare investory stocking and reordering policies with the EOQ (Economic Order Quantity) model
• Lockbox - Cash Management:  Determine where to locate lockboxes to minimize the "float" or interest lost to due mailing delays
• Open - Capacity Planning:  Determine which plants or warehouses should be opened or closed

On each example worksheet, read the description at the bottom, then select Solver on the Data tab in Excel 2007, or Tools Solver... from the menu in Excel 2003.  When you see the Solver Parameters dialog box, click the Solve button to find the optimal solution.

We're here to help -- contact us if you'd like more information or advice on your application.

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