A financier plans to invest up to 500000 in two projects


A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas Project B yields a return of 15% on the investment of y dollars. 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 40% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment?

(x,y) =

What is the maximum return? $

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Financial Management: A financier plans to invest up to 500000 in two projects
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