A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment, whereas project B yields a return of 14% on the investment. Because the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment? project A $ project B $ What is the maximum return? $
A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment, whereas project B yields a return of 14% on the investment. Because the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment? project A $ project B $ What is the maximum return? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment, whereas project B yields a return of 14% on the investment. Because the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment ? project A $ project B $ What is the maximum return? $
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