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A firm decides to invest x units of capital in project A and y units in project B. The expected return for one unit
A firm decides to invest x units of capital in project A and y units in project B. The expected return for one unit of investment is $400 in project A and $800 in project B. However, to meet the expectations of the firm's ethical and environmental policy the values of x and y must satisfy the constraint x2 + y? - 4x - 6y = 195 How many units of each type should the firm buy in order to maximize total return?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
