(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

Eva, senior analyst, is determining the optimal investment policy for her reality company, 4-Closure Associative. She has a budget of $6 million for year 1 and $5 million for year 2, and each project can be undertaken as a fraction, up to 100%. Her investment possibilities, in thousands, include, if invested 100%:

project; investment in year 1; investment in year 2; Return end of year 2

Rauncho; 1400; 1000; 3100

Mondo; 200; 70; 450

Wriggly; 2800; 1600; 5300

Glory; 900; 500; 2100

Upson; 1100; 700; 2400

(i hope it looks clear, it would look clear if you draw a table)

Funds not invested can be put into a money market account paying 11%.

Eva wants to maximise hers funds at the end of year 2.

Formulate a return-maximising Linear program for eva

2. Relevant equations

3. The attempt at a solution

decision variables:

let x1 be the investment in project Rauncho

x2 be the investment in project Mondo

etc...

x5 be the investment in project Upson

Maximising so:

(MAX) f = 3100x1 + 450x2 + 5300x3 + 2100x4 + 2400x5

subject to the constraints:

1400x1 + 200x2 + 2800x3 + 900x4 + 1100x5 <= 6000000

1000x1 + 70x2 + 1600x3 + 500x4 + 700x5 <= 5000000

Is that correct?

and also i dont know what to do about the part in the question that says:

'each project can be undertaken as a fraction, up to 100%'

and

'Funds not invested can be put into a money market account paying 11%.'

Thank you very much.

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# Homework Help: Linear programming

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