Formulate but Do Not Solve the Following Exercise as a Linear

question 6

Multiple Choice

Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $400,000 in two projects. Project A yields a return of 12% on the investment, whereas project B yields a return of 13% on the investment. 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 45% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment?

• A) Maximize: Subject to:
• B) Maximize: Subject to:
• C) Maximize: Subject to:
• D) Maximize: Subject to:

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Definitions:

Slope Failure

A phenomenon where a slope collapses due to gravity and other factors such as water saturation, leading to landslides.

Steepness

The measure of how sharp or incline a slope or angle is.

Debris Flows

Rapid, downhill flow of soil and rock fragments containing a large amount of water, which makes the mixture thick and fluid-like.

River Terrace

A flat, bench-like structure along the sides of a valley, formed by the erosion of a river and representing a previous level of the river bed.