A total of $50,000 was allocated to a project to detect and reduce insider theft in the
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A total of $50,000 was allocated to a project to detect and reduce insider theft in the ZipCar auto parts store. Two alternatives identified as Y and Z are under consideration. The overall ROR on the $50,000 is expected to be 40%, with the rate of return on the $20,000 increment between Y and Z at 15% per year. If Z is the higher first-cost alternative,
(a) what is the size of the investment required in Y,
(b) what is the rate of return on Y?
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