How should total capital be invested to maximize the return

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Reference no: EM131549114

Stolid Investments Inc. is providing capital (note: total capital is $4,500,000) in five areas for an investment plan for new businesses. A Stolid consultant estimated the following annual rate of returns for the areas of investment: Farming 10%, Information Technology 9%, Distribution 8%, CRM 11%, and Heavy-Equipment Manufacturing 7%.

How should the total capital be invested to maximize the return? ??The investment plan must meet the following requirements:

The capital allocated for Distribution plus CRM should not be greater than that allocated to Heavy-Equipment Manufacturing.

The capital for CRM should be 26 percent of the total of other four markets (Farming, Information Technology, Distribution, and Heavy-Equipment Manufacturing)

The capital provided to Heavy-Equipment Manufacturing should be at most 40 percent of the total capital.

Distribution should be at least 15 percent of the total capital.

The capital allocated for Information Technology plus Distribution should be no more than the capital allotted for Farming.

What is the linear program that provides the maximum return on the total investment?

Using your linear program to find the solution, what is the maximum total estimated return?

Reference no: EM131549114

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