Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3 options available. If dj dollars (in thousands) are invested in investment j, then a net present value (in thousands) of r(d)) is obtained, where the ri(d))'s are as follows: ri(di)=7d₁+2 (d₁ ≥ 0) r₂(d₂)=3d₂+7 (d₂ ≥ 0) ra(da)=4d3 +5 (d; ≥ 0) r₁(0)= r2 (0) 3 (0) = 0 ngineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...) ow can company engineers allocate $8000 to maximize the income from these investments?
Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3 options available. If dj dollars (in thousands) are invested in investment j, then a net present value (in thousands) of r(d)) is obtained, where the ri(d))'s are as follows: ri(di)=7d₁+2 (d₁ ≥ 0) r₂(d₂)=3d₂+7 (d₂ ≥ 0) ra(da)=4d3 +5 (d; ≥ 0) r₁(0)= r2 (0) 3 (0) = 0 ngineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...) ow can company engineers allocate $8000 to maximize the income from these investments?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:4. Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3
options available. If d, dollars (in thousands) are invested in investment j, then a net present
value (in thousands) of ri(d)) is obtained, where the ri(d))'s are as follows:
ri(di)=7d₁ + 2 (d₁20)
r₂(d₂)=3d₂+7 (d₂ ≥ 0)
ra(da)=4d3 +5 (d, ≥ 0)
r₁(0)= r₂ (0) 3 (0) = 0
=
Engineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...)
How can company engineers allocate $8000 to maximize the income from these investments?
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