QUESTION ONE (60 XYZ Co. has provided the following data seeking your advice on the optimum investment strategy: Investment at the Net return data of selected investments Amount be innin; of the ear available (E) (b) 70 40 30 \"ml-:- "Ia-m- ml mu\" \".m- The following additional information is also provided: 0 P, Q, R and 5 represent the selected investments 0 The company has decided to have four years investment plan 0 The policy of the company is that the amount invested in any year will remain so until the end of the fourth year 0 The values in the table represent net returns on investment of 1 till the end of the planning horizon Determine the optimal investment strategy. You may use the transportation technique. Burt Wheeler is the production manager of Wheeler Wheels, Inc. Burt has just received orders for 1,000 standard wheels and 1,250 deluxe wheels next month and for 800 standard and 1,500 deluxe wheels the following month. All orders are to be filled. The cost of producing standard wheels is $10 and deluxe wheels is $16. Overtime rates are 50% higher. There are 1,000 regular hours and 500 hours of overtime available each month. The cost of storing one wheel from one month to the next is $2. Develop a two-month production schedule for Burt of Standard and Deluxe wheel production if it takes 0.5 hour to make a standard wheel and 0.6 hour to make a deluxe wheel and solve using any relevant computer software A drug manufacturer holds the patent rights to a new formula for lowering cholesterol levels. The manufacturer is able to sell the patent for $50,000 or to proceed with intensive tests of the drug's efficacy. The cost of carrying out these tests is $10,000. if the drug is found to be ineffective, it will not be marketed, and the cost of the tests will be written off as a loss. In the past, tests of drugs of this type have shown 60% to be effective and 40% ineffective. If the tests should now reveal the drug to be effective, the manufacturer has the option either to sell the patent rights and test results for 120,000 or to market the drug. If the drug is marketed, it is estimated that profits on sales (exclusive of the cost of the tests) will amount to 180,000 if the sales campaign is highly successful, but only 90,000 if it is just moderately successful. It is estimated that these two levels of market penetration are equally likely. According to the expected monetary value criterion, how should the drug manufacturer proceed