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Ues numerical method to solve this problem step by step!!! Problem A global investment company would like to make an investment on several Oil and

Ues numerical method to solve this problem step by step!!! image text in transcribed
Problem 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 ANNUAL RETURN COST FOR BLOCK OF SHARES COMPANY NAME (LOCATION) Trans-Texas Oil (Texas) British Petro (Foreign) Dutch Shell (Foreign) Houston Drilling (Texas) Lone Star Petro (Texas) San Dieago Oil (California) California Petro (Califomia) S 50 S 80 $ 90 $120 $110 $ 40 $ 75 S 480 S 540 S 680 $1,000 S 700 s 510 s 900 Constraints Total maximum investment is limited to 3,000$ The investor should invest in at least two Texas companies (Trans-Texas, Houston Drilling and Lone Star Petro) The investor should invest in only one California company (San Diego Oil and California Petro) The investor should invest in maximum one foreign companies (British Petro and Dutch Shell) The binary investment value of British Petro should be less than the binary investment value of Trans Texas All decision variables should have binary values, O or1 1. 2. 3. 4. 5. 6. Problem 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 ANNUAL RETURN COST FOR BLOCK OF SHARES COMPANY NAME (LOCATION) Trans-Texas Oil (Texas) British Petro (Foreign) Dutch Shell (Foreign) Houston Drilling (Texas) Lone Star Petro (Texas) San Dieago Oil (California) California Petro (Califomia) S 50 S 80 $ 90 $120 $110 $ 40 $ 75 S 480 S 540 S 680 $1,000 S 700 s 510 s 900 Constraints Total maximum investment is limited to 3,000$ The investor should invest in at least two Texas companies (Trans-Texas, Houston Drilling and Lone Star Petro) The investor should invest in only one California company (San Diego Oil and California Petro) The investor should invest in maximum one foreign companies (British Petro and Dutch Shell) The binary investment value of British Petro should be less than the binary investment value of Trans Texas All decision variables should have binary values, O or1 1. 2. 3. 4. 5. 6

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