List the Decision Variables and Write the Objective Function as well as list the Constraints Nancy Smith
Fantastic news! We've Found the answer you've been seeking!
Question:
List the Decision Variables and Write the Objective Function as well as list the Constraints
Transcribed Image Text:
Nancy Smith has $250,000 to invest in three alternative investments-condominiums, land, and municipal bonds. She wants to invest in the alternatives that will result in the greatest return on investment after 1 year. Each condominium costs $50,000 and will return a profit of $9,000 if sold at the end of 1 year; each acre of land costs $12,000 and will return a profit of $1,500 at the end of 1 year; and each municipal bond costs $8,000 and will result in a return of $1,000 if sold at the end of 1 year. In addition, there are only 4 condominiums, 15 acres of land, and 20 municipal bonds available for purchase. Nancy wants to know number of condominiums, bonds, and acres of land to invest in order to maximize her annual return. Nancy Smith has $250,000 to invest in three alternative investments-condominiums, land, and municipal bonds. She wants to invest in the alternatives that will result in the greatest return on investment after 1 year. Each condominium costs $50,000 and will return a profit of $9,000 if sold at the end of 1 year; each acre of land costs $12,000 and will return a profit of $1,500 at the end of 1 year; and each municipal bond costs $8,000 and will result in a return of $1,000 if sold at the end of 1 year. In addition, there are only 4 condominiums, 15 acres of land, and 20 municipal bonds available for purchase. Nancy wants to know number of condominiums, bonds, and acres of land to invest in order to maximize her annual return.
Expert Answer:
Answer rating: 100% (QA)
The decision variables x and y decide the output of the LP problem and represent ... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Mary Sue owns 600 shares of QRS Moving Company. QRS pays a quarterly dividend of $0.50 per share. What is the total annual dividend that Mary Sue will receive?
-
A certain ball has the property that each time it falls from a height onto a hard, level surface, it rebounds to a height rh, where 0 < r < 1. Suppose that the ball is dropped from an initial height...
-
Although epoxides are always considered to have their oxygen atom as part of a threemembered ring, the prefix epoxy in the IUPAC system of nomenclature can be used to denote a cyclic ether of various...
-
A chemical reaction was run 48 times. In each run, different values were chosen for the temperature in degrees Celsius (x1), the concentration of the primary reactant (x2), and the number of hours...
-
Discuss the risks depicted by the fixed asset system flowchart for Problem 10. Describe the internal control improvements to the system that are needed to reduce theserisks. Vendor User Department...
-
1. Juno Mining Company plans a $200 million debt issue. The debt's YTM is 10%, and Juno has a 40% tax rate. What is its after-tax cost of debt? 2. Butternut Company sells for $10 per share. Its...
-
Amplitude-modulated (AM) radios use an oscillator operating at \(455 \mathrm{kHz}\) to demodulate the received signal. This frequency is called the intermediate frequency or IM. Your task is to...
-
A simple frictionless piston cylinder device holds 2.5 kg of steam at 400 kPa and 200C. Next, the steam is cooled until a saturated mix of quality equal to 0.6 forms inside the cylinder. Please...
-
Describe how teachers collect data in order to determine the functions of a behavior. Analyze the importance of collecting and reviewing data before implementing specific interventions to address...
-
An object moving along a horizontal track collides with and compresses a light spring (which obeys Hooke's Law) located at the end of the track. The spring constant is 40.7 N/m, the mass of the...
-
Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ...
-
What are to smart social media objectives? Being that one is communication objective and one a business objective? For a BMW Auto repair shop
-
(a) State classical definition of probability and clearly mention its limitations. (b) If six married couples are seated at random at a round table, find the probability that no wife sits next to her...
-
Kindly assist with Harvard referencing on the below author (Name of the book, publisher) 1. Components of employee engagement by Van Westhuyzen, 2017 2. Theoretical frameworks by Rheem (2018) 3....
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
Data Processors Ltd performs credit card services for banks. The entity uses an activity based costing (ABC) system. Following is information for the past year: Required (a) Using standard values for...
-
What is the link between sustainability strategies and management accounting?
-
The manager of the HR department of Nancy Accountants has been asked to prepare her annual budget on a zero-based budgeting basis. Required Outline why this request for a zero-based budget may have...
-
Describe the triangle of relationships shown in Figure 4.2 . FIGURE 4.2 Auditor, Client, and Third-party Relationships is hired by and owes a duty of due care to The Auditor may owe a duty to The...
-
Describe the two auditing implications of the \(U l\) tramares case as shown in Figure 4.3. FIGURE 4.3 Common Law Relationships Established by the Ultramares Case Auditor's Liability under Common Law...
-
What effect did each of these cases have on auditors' ordinary negligence liability to third parties? a. C.I.T. Financial Corporation. b. Rusch Factors, Inc. v. Levin. c. Rosenblum v. Adler.
Study smarter with the SolutionInn App