Question: for vote up please answer correctly Investment Plan Optimization (Oil and Gas Industry in the United States) A global investment company would like to make

for vote up please answer correctly for vote up please answer correctly Investment
for vote up please answer correctly Investment
Investment Plan Optimization (Oil and Gas Industry in the United States) A global investment company would like to make an investment on several Oil and Gas Companies in the United States. Total annual expected return (in thousands) and cost for block of shares (investment costs in thousands) are given in Table 1. Table 1. Company name, expected annual return and cost for block of shares EXECTED ANNUAL RETURN ON THOUSANDS $50 $ 30 COMPANY NAME LOCATION Trans-Teras (T) British Petro foi Dutch Shall right Houston Drillingen Lone Si Petro Teas San Diego Cai Califormitowa COST FOR BLOCK OF SWES IN THOUSANDS) 5480 $ 540 $60 51.000 $ 700 $510 5 900 5110 575 Constraints: Total maximum investment is limited to 3,000S The investor should invest in at least two Texas companies (Trans-Texas, Houston Drilling and Lone Star Petro) The investor should invest in only one California company (San Diego Oil and California Petro) The investor should invest in maximum one foreign companies (British Petro and Dutch Shell) The binary investment value of British Petro should be less than the binary investment value of Trans Texas Considering the above table and the investment constraints, a) Please formulate your LP model and explain why our decision variables are binary (10 points) b) After solving LP model in the Excel Solver for each binary decision variable, please find the total expected annual return; list the oil companies that have an investment value of 1, and point out binding and nonbinding constraints and show slack values (20 points). For part b, please copy and paste the Excel solver output below: c) If we change the coefficient of expected annual return for the Dutch Shell from 90$ to 120$, what will be the final value of objective function and decision variables. Please write it as a function of sensitivity analysis (10 points). For part e, please copy and paste the excel output below: d) If we reduce the investment limit to 2500s, what will be the final objective function value and the binary value of each decision variable? Is there any change? (10 points) For part d, please copy and paste the excel output below

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