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An Investor Has $500,000 to Invest and Wants to Maximize

Question 61

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An investor has $500,000 to invest and wants to maximize the money they will receive at the end of one year.They can invest in condos,apartments and houses.The profit after one year,the cost and the number of units available are shown below.
 Profit Cost  Number  Variable  Investment $1,000)$1,000) Available X1 Condos 65010X2 Apartments 12905X3 Houses 91007\begin{array}{rrrrr}&&\text { Profit}&\text { Cost }&\text { Number }\\\text { Variable } & \text { Investment } & \$ 1,000) & \$ 1,000) & \text { Available } \\\hline \mathrm{X}_{1} & \text { Condos } & 6 & 50 & 10 \\\mathrm{X}_{2} & \text { Apartments } & 12 & 90 & 5 \\\mathrm{X}_{3} & \text { Houses } & 9 & 100 & 7\end{array}
Based on this ILP formulation of the problem and the indicated optimal integer solution values what values should go in cells B5:F12 of the following Excel spreadsheet?
MAX: 6 X1 + 12 X2 + 9 X3
Subject to: 50 X1 + 90 X2 + 100 X3 ? 500
X1 ? 10
X2 ? 5
X3 ? 7
Xi ? 0 and integer

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Solution: X1

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