Creating a mixed integer programming model

Reference no: EM1322974

Q1) Lauren Moore has sold her business for $500,000 and wishes to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She evaluates that she will get the annual return of $8,000 for each condominium and $6,000 for each acre of land. Condominium unit costs $70,000, and land costs $30,000 per acre. 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 for these annual expenses. Lauren wishes to know how much to invest in condominiums and land to maximize her annual return.

a) Create a mixed integer programming model for this problem.

b) Solve this model using computer.

Reference no: EM1322974

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