A financier plans to invest up to 975000 in two projects, Operation Management

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A financier plans to invest up to 975000 in two projects

A financier plans to invest up to $975,000 in two projects. Project A yields a return of 10% on the investment, whereas Project B yields a return of 15% on the investment. 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? What is the maximum return?

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Operation Management: A financier plans to invest up to 975000 in two projects

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