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What am I doing wrong? I am trying to use Excel solver to do this problem. It keeps telling me Objective cell contents must be
What am I doing wrong? I am trying to use Excel solver to do this problem. It keeps telling me "Objective cell contents must be a formula." I know I must be making a simple mistake. I just don't know what it is! Also, I do not understand where -1.82E-12 comes from in J22. And also 2E-12 in M22. Thank you for any guidance you can give!
College of Business Quantitative Business Studies BUSM 36000 -Linear Programming Assignment 7 WELTE MUTUAL FUNDS Welte Mutual Funds, Inc., located in New York City has just obtained $100,000 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 oil industry, steel industry, or in government bonds. Specifically, the analyst has identified five investment opportunities and projected their annual rate of return. The investments and rates of return are shown in the following table: INESTMENT OPPORTUNTIES FOR WELTE MUTUAL FUNDS Investment Projected rate of return % Atlantic Oil Pacific Oil Midwest Steel Huber steel Government bonds 7.3 10.3 6.4 7.5 4.5 Management of Welte imposed the following investment guidelines: 1. Neither industry (oil or steel) should receive more than $50,000. 2. Government bonds should be at least 25%of the steel industry investment. 3. The investment in Pacific Oil, the high-return but high-risk investment cannot be more than 60% of the total oil industry investment. 1. Formulate a Linear-programming Model for Welte Mutual Funds. (20 points) 2. What portfolio recommendations __investments and amounts __should be made for the available $100,000? Provide your Excel solution along with all the reports generated through Excel. (15 point) 3. Write a report that explains your findings. (15 points) Please note that your solution to this assignment will be used to assess AACSB Bachelor of Science in Business learning outcomes 3a, 4b, and 4c as mention in the course syllabus. Also this assignment will be graded out of 50 points. Good luck. A P M H G Atlantic Oil Pacific Oil Midwest Steel Huber Steel Government Bonds A+P+M+H+G=$100,000 A+P$50,000 M+H$50,000 G.25(M+H) P.6(A+P) 0.073 0.103 0.064 0.075 0.045 G-.25M-.25H0 .4P-.6A0 Atlantic Oil Investment Amount Total Annual Returns Total Funds Oil Limit Steel Limit Bonds Required Pacific Oil Limit Pacific Oil 0 Midwest Steel Huber Steel 0 0 0 0.073 0.103 0.064 0.075 1 1 1 1 1 1 1 -0.25 1 -0.25 -0.6 0.4 Government Bonds 0 0.045 1 1 LHS 100,000 = 50,000 40,000 0 -1.82E-12 RHS Slack 100000 0 50000 0 50000 10000 0 0 0 2.00E-12Step by Step Solution
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