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: 1. The Primo mortgages. The Insurance Company is introducing two new product lines: special risk insurance and expected profit is S5 per unit on

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: 1. The Primo mortgages. The Insurance Company is introducing two new product lines: special risk insurance and expected profit is S5 per unit on special risk insurance and $2 per unit on mortgages. nagement wishes to establish sales quotas for the new product lines to maximize total expected profit The work requirements are as follows: Work-Hours per Unit Work-Hours Available 2400 800 1200 Department Special Risk Underwriting Administration Claims Define the decision variables and formulate a linear programming model for this problem. (20 scores) 2. The board of directors of General Wheels Co. is considering six large capital investments. Each investment can be made only once. These investments differ in the estimated long-run profit (net present value) that they will generate as well as in the amount or capital required, as shown by the following table (in units of millions of dollars). Investment opportunity 12 18 Estimated profit Capital required 15 38 33 39 45 23 7 The total amount of capital available for these investments is $100 million. Investment opportunities 1 and 2 are mutually exclusive, and so are 3 and 4. Furthermore, neither 3 nor 4 can be undertaken unless one of the first two opportunities is undertaken. There are no such restrictions on investment opportunities 5 and 6.The objective is to select the combination of capital investments that will maximize the total estimated long-rm profit (net present value). Define the decision variables and formulate a 0-1 integer programming for this p 1

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