1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kitty [74]
3 years ago
11

A financier plans to invest up to $600,000 in two projects. Project A yields a return of 9% on the investment x dollars, whereas

project B yields a return of 16% on the investment of y dollars. Because investment B is riskier than investment 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 P in dollars, and what amount is available for investment?
Business
1 answer:
USPshnik [31]3 years ago
6 0

Answer:

Project A = $240,000

Project B = $360,000

Explanation:

Planned Investment amount = $600,000

Project A = x dollars, with 9% return

Project B = Y dollars, with 16% return

Project B should not exceed 40% of total investment amount

Therefore, if y dollars is spent on project B,

(600,000 - y) is spent on project A

Return on project A :

0.09(600,000 - y) = 54,000 - 0.09y

Return on project B :

0.16y

Total return = return on A + return on B

54,000 - 0.09y + 0.16y

Total return = 54,000 + 0.07y

Note: Project B should not exceed 40% of investment, Therefore,

y <= 0.4(600,000)

y <= 240,000

slope of the function is positive '54,000 + 0.07y', total return increases when y increases.

Therefore return on investment will be maximized when y = 240,000, as it should not exceed 40% for project B and the rest 360,000 can be invested in project A.

You might be interested in
Explain how consumer and producer surplus affect economic well-being. When the price of a good or service is – enough, it will e
horrorfan [7]

Answer:

the general welfare will be the sum of consumer surplus and producer surplus.

Explanation:

The consumer and producer surplus assessment serves to measure the overall efficiency of the market, which in turn is associated with overall well-being. An efficient market is one in which both consumers and producers have the incentive to negotiate and effect trade.

Consumer surplus is the difference between the amount he or she is willing to pay and how much he or she actually pays for the product. This surplus is positive when the amount paid is less than the amount for which the consumer would be willing to pay.

Similarly, the producer's surplus is the difference between the market price and the price at which the seller is willing to produce and sell. When the producer's surplus is positive, it means that he sells the product for a price higher than the minimum value that would stimulate him to produce.

Thus, the general welfare will be the sum of consumer surplus and producer surplus.

4 0
3 years ago
When individual fishing boats harvest more fish each year in order to maximize profits while, as a result, threatening the fish
zimovet [89]
The answer to the question presented above would be the tragedy of the commons. When individual fishing boats harvest more fish each year in order to maximize profits while, as a result, threatening the fish population with <span>extinction, it is called tragedy of the commons. </span>
4 0
3 years ago
Read 2 more answers
Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the
Schach [20]

Answer:

$100,000

Explanation:

According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''

Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

8 0
3 years ago
Can someone help me please? I attached the question THANKS
galben [10]

Answer:

Press a standard key on the keyboard.

Move the mouse.

Explanation:

7 0
3 years ago
Read 2 more answers
A company had beginning inventory of 12 units at a cost of $15 each on March 1. On March 2, it purchased 12 units at $24 each. O
Tema [17]

Answer:

The cost of the 28 units sold is $548

Explanation:

In the given question,  

On March 1 it purchase 12 units for $15 = 12 units × $15 = $180

On March 2 it purchase 12 units for $24 = 12 units × $24 = $288

On March 6 it purchase 7 units for $20 = 7 units × $20 = $140

And, on march it sold 28 units for $63 each  

The 28 units could be taken from  

12 × $15 = $180

12 × $24 = $288

And remaining 4 units × $20 = $80

So, the total cost of units sold = $180 +$288 +$80 = $548

4 0
3 years ago
Other questions:
  • How do I find the autonomous consumption?
    5·1 answer
  • One criteria for deciding whether to have a server active all the time or have it start on demandusing a process server is how f
    10·1 answer
  • Scallion Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan asse
    15·2 answers
  • Katrina receives an offer to buy a box of candy through the mail each month. The letter says that she will begin receiving candy
    8·1 answer
  • One of your clients is a sophisticated 40 year old investor and has recently changed jobs. The client is considering rolling ove
    14·1 answer
  • Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%
    6·1 answer
  • Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area?
    11·2 answers
  • Forever Inc. is a confectionery company that manufactures candies. It does not use specific strategies to target children when m
    9·1 answer
  • Make a list of profession and identify their levels​
    8·2 answers
  • which management theory uses time-motion studies to find the one best method for workers to perform each task and then teaches t
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!