Question: Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $500,000 in two projects. Project

Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas project B yields a return of 13% on the investment of y dollars. Because the investment in project B is riskier than the investment in project A, the financier has decided that the investment in project B should not exceed 45% of the total investment. How much should she invest in each project in order to maximize the return on her investment, P? Maximize P= subject to the constraints amount available for investment allocation of funds x 20 y 20 Need Help? Read It
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
