Finco Resource Allocation
Finco has $6000 to invest, and three investments are available. If
dj dollars (in thousands) are invested in investment j,
then a net present value (in thousands) of rj dj
is obtained, defined (for positive dj) as follows:
r1(d1) = 7 d1 + 2
r2(d2) = 3 d2 + 7
r3(d3) = 4 d3 + 5
Each investment returns 0 dollars on a 0 investment.
The amount placed in each investment must be an exact multiple of
$1000. To maximize the net present value obtained from the
investments, how should Finco allocate the $6000?