Having trouble setting up the problem using excel solver and inputting the constraints Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (whichshe intends to rent) and land (which she will lease to a farmer). She estimates that she will receive anannual return of $8,000 for each condominium and $6,000 for each acre of land. A condominiumunit costs $70,000, and land costs $30,000 per acre. A condominium will cost her $1,000 per unit,an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted forthese annual expenses. Lauren wants to know how much to invest in condominiums and land tomaximize her annual return. Formulate an integer programming model for this problem. Define x1 asthe number of units of condominium she would invest, x2 as acres of land she would invest and Z asthe total annual return. Which of the following model formulations is correct? Solve the previously formulated model (Lauren Moore's investment problem) by using Excel andPOM-QM, the optimal solution isO x1=5, x2=4x1=5, x2=4.5x1=5.27, x2=4.36O x1=5.43, x2=4

As mentioned in the question, the decision variables will be x1 and x2. x1 = Units of condominium…

Answered: Lauren Moore has sold her business for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section: Chapter Questions

Problem 41P

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