Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $5 million in three projects. She estimates that project A will yield a return of 11% on her investment, project B will yield a return of 16% on her investment, and project C will yield a return of 23% on her investment. Because of the risks associated with the investments, she decided to put not more than 40% of her total investment in project C. She also decided that her investments in projects B and C should not exceed 70% of her total investment. Finally, she decided that her investment in project A should be at least 70% of her investments in projects B and C. How much should the financier invest in each project if she wishes to maximize the total returns on her investments?
A) Maximize: Subject to:
B) Maximize: Subject to:
C) Maximize: Subject to:
D) Maximize: Subject to:
Correct Answer:
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