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Return to question 1 Schneeberger, Inc. is considering investing in one of two alternatives for increasing the acceleration of its linear motor actuators. The first,
Return to question 1 Schneeberger, Inc. is considering investing in one of two alternatives for increasing the acceleration of its linear motor actuators. The first, alternative X, requires an initial investment of $200,000 and its cash flows exhibit an annual rate of return of i*x = 20%. The second, alternative Y, requires an initial investment of $100,000 and its cash flows have an annual rate of return of Y = 25%. Schneeberger's MARR is 20% per year. Answer the following questions; (a) Will the rate of return on the incremental investment in X be larger or smaller than 8*X? (b) What is the expected 7*X-Y? 10 points The rate of return on the increment is less than 20% per year. The expected * X-Y is %
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