A real estate developer will build two different types of


Question: A real estate developer will build two different types of apartments in a residential area: one-bedroom apartments and two-bedroom apartments. In addition, the developer will build either a swimming pool or a tennis court in the area that serves the residents. The swimming pool costs $2.1 million and the tennis court costs $1.8 million. If the swimming pool is built, the number of one-bedroom apartments must be at least triple the number of two-bedroom apartments. If the tennis court is built, the number of one-bedroom apartments is at most one-half of the number of two-bedroom apartments. Each one-bedroom apartment is expected to have a revenue of $50,000 whereas each two-bedroom apartment is expected to have a revenue of $55,000. The site can have at most 11,000 apartments. Please formulate a mathematical model to help the developer maximize the total profit. Please use GAMS to find the optimal solution and optimal value.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: A real estate developer will build two different types of
Reference No:- TGS02863231

Expected delivery within 24 Hours