What is the size of the investment required

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

Reference no: EM131984068

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