Welte Mutual Funds, Inc. located in New York City has obtained $100,000 by converting industrial bonds to cash and is no

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Welte Mutual Funds, Inc. located in New York City has 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 renewable
industry, steel industry, or in government bonds. Specifically, the
analyst identified five investment opportunities and projected
their annual rates of return as shown here:
Management of Welte imposed the following investment
guidelines:
1. Neither industry (renewable or steel) should
receive more than $50,000.
2. Government bonds should be at least 25% of the steel
industry investments.
3. The investment in Pacific Renewable, which is the
high return but high-risk investment, cannot be more than 60% of
the total renewable industry investment.
(a) Use Linear Programming Excel Solver Solution to
Determine the optimal mix of investment options to maximize the
annual return. In other words, how much should the company invest
in each of the five investment options?
A= Funds invested in Atlantic Oil =$20000
P= Funds invested in Pacific Oil = $30000
M= Funds invested in Midwest Steel = 0
H= Funds invested in Huber Steel = $40000
G= Funds invested in Government Bonds = $10000
QUESTION A IS ALREADY ANSWERED NEED B &
C
(b) What is the total annual return in dollars
(across all investment options) if the company were to follow the
investment strategy outlined in part (a)?
(c) What is the annual return in dollars of the
Renewable Industry if the company were to follow the investment
strategy outlined in part (a)?