Welte Mutual Funds obtained $100,000 by converting industrial bonds to cash and is now

looking for investment opportunities

for these funds. The firm's top financial analyst

identified five investment opportunities presented in the table below.

Investment

Projected Rate

of Return (%)

Atlantic Oil

7.3

Pacific Oil

10.3

Midwest Steel

6.4

Huber Steel

7.5

Government Bonds

4.5

The management of Welte imposed the following investment guidelines.

Neither industry (oil or steel) should receive more than $50,000

Government bonds should be at least 25% of the steel industry investments

The investment in Pacific Oil, the high-return but high-risk investment, cannot be

more than 60% of the total oil industry investment.

What portfolio recommendations should be made for the available $100,000?

Revised Mathematical Equation:

Maximize: Investments: 0.073A + 0.103P + 0.064M + 0.75H + 0.045G

Subject to Constraints:

A + P + M + H +G < $100,000 Total Investment

A + P < $50,000 Investment in Oil

M + H < $50,000 Investment in Steel

G + -0.25M -0.25H > 0 Investment in Government

-0.60A + 0.40P < 0 Investment in Pacific Oil

A, P, M, H, G > 0

How do you enter these into an excel spreadsheet solver?