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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

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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 $180,000 and its cash flows exhibit an annual rate of return of i"X = 19%. The second, alternative Y, requires an initial investment of $120,000 and its cash flows have an annual rate of return of = 21%. 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 m? (b) what is the expected X-Y? The rate of return on the increment is less than 19% per year. The expected rxy is 7%

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