 Jaxon Hamilton

2022-07-24

Formulate but do not solve the following exercise as a linear programming problem.
A financier plans to invest up to $600,000 in two projects. Project A yields a return of 10% on the investment of x dollars, whereas Project B yields a return of 14% 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 40% of the total investment. How much should she invest in each project to maximize the return on her investment P in dollars, and what amount is available for investment? Answer & Explanation abortargy Expert 2022-07-25Added 19 answers Step 1 Given, Project A yields a return of 10% on the investment of x dollars, whereas Project B yields a return of 14% on the investment of y dollars. Then, the total return from two investments is $=\mathrm{}\left[\left(10\mathrm{%}×x\right)+\left(14\mathrm{%}×y\right)\right]$ $=\mathrm{}\left[\left(0.1×x\right)+\left(0.14×y\right)\right]\phantom{\rule{0ex}{0ex}}=\mathrm{}\left(0.1x+0.14y\right)$ Let the total return be $\mathrm{}z$ Them we have, $z=0.1x+0.14y$ Since financier plans to invest up to$600,000 in two projects, then we have,
$x+y\le 600000$
Here, the total investment is $=\mathrm{}\left(x+y\right)$
Since the investment in Project B should not exceed $40\mathrm{%}$ of the total investment, then we have,

Now the linear programming problem becomes,

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