1. Model both the Mortgage Portfolio Optimization and Part 1 of the Real Estate Investment Planning (the part without taxation) problems as LPs.
2. Solve both models using a software tool of your choice, preferably using either Excel Solver or Matlab. The NuOpt tool in S-Plus is also possible, but at the moment you'll be on your own if you choose this route. I still need to learn how to use this tool myself.
3. Prepare a final report for submission. The report should be neatly prepared and typed on 11 by 8.5 inch paper and contain the following items:
   1. A complete description of the two models including a complete list of variable name definitions and a complete list of constraints with accompanying written descriptions.
   2. A complete description of the solutions to both models including the corresponding solution to the dual problem, here include printouts of the appropriate Excel pages (or Matlab files using the fprintf command).

Hint: The optimal value in the mortgage portfolio problem is 0.112 and the optimal value in the real estate planning problem is $7,665,179. In addition, at optimality one does not invest in the Disney-Universe Hotel in the real estate planning problem. The real estate planning problem problem can be modeled with 16 variables or fewer. But fewer than 15 variables is probably not advisable.

Mathematics Department

University of Washington