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I. The Lorraine Organization is a good investment company. Recently, the organization has $ 400 million to invest. The organization has to assign this amount

I. The Lorraine Organization is a good investment company. Recently, the organization has $ 400 million to invest. The organization has to assign this amount to two kinds of investment: Tax Evasion (E) and Trafficking (T). Previously, the organization has invested at least $ 150 million on E. The organixation prefers to continue with this minimum requirement. Further, the organization would like to allocate the amount invested in T, to be at least 20% (or 0.02) of its total investments (in T and E). Currently, in this market, the returns are as follows: a unit of Eyields $ 0.16 in returns a unit of T yields $ 0.10 in returns How many $ should be invested in Eand T, to maximize the total returns to The Lorraine Organization? a. What is The Lorraine Organizations objective function ? b. What are the constraints ? c. Graph the constraints and derive the feasible set. d. What is the optimal (E, T) combination ? e. What are the maximum total returns ?

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