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There was a typo: Steel should be Solar. Oil should be hydroelectric. 13. Consider the case of Chill Bean Mutual Funds, Inc., located in New
There was a typo: Steel should be Solar. Oil should be hydroelectric.
13. Consider the case of Chill Bean Mutual Funds, Inc., located in New York City. Chill Bean just obtained $120,000 by converting industrial bonds to cash and is now looking for other investment opportunities for these funds. Based on Welte's current investments, the firm's top financial analyst recommends that all new investments be made in the solar industry, hydroelectric industry, or government bonds. Specifically, the analyst identified five investment opportunities and projected their annual rates of return. Management of Chill Bean imposed the following investment guidelines: 1. Neither industry (solar ar hydroelectric) should receive more than $60,000. 2. Government bonds should be at least 25% of the steel industry investments. 3. The investment in Silicon Solar, the high-return but high-risk investment, cannot be more than 60% of the total oil industry investment. Use the Table to Define your decision variables and your constraints. Write the full linear program Investment Projected Rate of Return (%) Global Solar 7.5 Silicon Solar 10.6 7.8 Midwest Hydroelectric Niagara Hydroelectric 6.9 Government Bonds 5.1 13. Consider the case of Chill Bean Mutual Funds, Inc., located in New York City. Chill Bean just obtained $120,000 by converting industrial bonds to cash and is now looking for other investment opportunities for these funds. Based on Welte's current investments, the firm's top financial analyst recommends that all new investments be made in the solar industry, hydroelectric industry, or government bonds. Specifically, the analyst identified five investment opportunities and projected their annual rates of return. Management of Chill Bean imposed the following investment guidelines: 1. Neither industry (solar ar hydroelectric) should receive more than $60,000. 2. Government bonds should be at least 25% of the steel industry investments. 3. The investment in Silicon Solar, the high-return but high-risk investment, cannot be more than 60% of the total oil industry investment. Use the Table to Define your decision variables and your constraints. Write the full linear program Investment Projected Rate of Return (%) Global Solar 7.5 Silicon Solar 10.6 7.8 Midwest Hydroelectric Niagara Hydroelectric 6.9 Government Bonds 5.1 Step by Step Solution
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