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Two Quality control systems X and Y are being considered for purchase according to the below table. Use RATE OF RETURN analysis to determine which

Two Quality control systems X and Y are being considered for purchase according to the below table. Use RATE OF RETURN analysis to determine which system is to be bought. The MARR is 5%.

X Y
Initial Cost 200 700
Uniform Annual Benefit 95 120
End of Lift Salvage Value 50 150
Useful Life (in years) 6 12

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