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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
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 EXPECTED COST FOR COMPANY NAME ANNUAL RETURN BLOCK OF SHARES (LOCATION) (IN THOUSANDS) (IN THOUSANDS) Trans-Texas Oil (Texas) $ 50 $ 480 British Petro (Foreign) $ 80 $ 540 Dutch Shell (Foreign) $ 90 $ 680 Houston Drilling (Texas) $120 $1,000 Lone Star Petro (Texas) $110 $ 700 San Dieago Oil (California) $ 40 $ 510 California Petro (California) $ 75 $ 900 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: 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 EXPECTED COST FOR COMPANY NAME ANNUAL RETURN BLOCK OF SHARES (LOCATION) (IN THOUSANDS) (IN THOUSANDS) Trans-Texas Oil (Texas) $ 50 $ 480 British Petro (Foreign) $ 80 $ 540 Dutch Shell (Foreign) $ 90 $ 680 Houston Drilling (Texas) $120 $1,000 Lone Star Petro (Texas) $110 $ 700 San Dieago Oil (California) $ 40 $ 510 California Petro (California) $ 75 $ 900 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
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