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Linear Programming Problem

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(excel spreadsheet w/ problem attached)

The stock brokerage firm of Blank, Leibowitz, and Weinberger has analyzed and recommended two stocks to an investors' club of college professors. The professors were interested in factors such as short-term growth, intermediate growth, and dividend rates. These data on each stock are as follows:

Stock $
Factor Lousiana Gas & Power Trimex Insulation Co.
Short-term growth potential per $ invested 0.36 0.24

Intermediate growth potential (over next 3 yrs), per $ invested 1.67 1.5

Dividend Rate Potential 4% 8%

Each member of the club has an investment goal of (1) an appreciation of no less than $720 in the short term, (2) an appreciation of at least $5,000 in the next three years, and (3) a dividend income of at least $200 per year. What is the smallest investment that a professor can make to meet these three goals?

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