ZipCar auto parts store has $92,000 to invest in a project to detect and reduce insier...

 

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ZipCar auto parts store has $92,000 to invest in a project to detect and reduce insier theft in their stores. They have considering investing in one of two alternatives, identified as Y and Z. Z is the higher first-cost alternative, and the incremental initial investment between the two is $18,000 and will exhibit a rate of return of 8% per year. Z requires an investment of $92,000. They expect a rate of return on the $92,000 investment of 40 percent. Answer the following questions: (a) what is the size of the investment required in Y?, and, (b) what is the rate of return on Y? The size of the investment required in Y is $ The rate of return on Y is ZipCar auto parts store has $92,000 to invest in a project to detect and reduce insier theft in their stores. They have considering investing in one of two alternatives, identified as Y and Z. Z is the higher first-cost alternative, and the incremental initial investment between the two is $18,000 and will exhibit a rate of return of 8% per year. Z requires an investment of $92,000. They expect a rate of return on the $92,000 investment of 40 percent. Answer the following questions: (a) what is the size of the investment required in Y?, and, (b) what is the rate of return on Y? The size of the investment required in Y is $ The rate of return on Y is

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a To find the size of the investment required in alternative Y we need to subtract the incre... View the full answer