What is the size of the investment required

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A total of $50,000 was available for investing in a project to reduce insider theft in an appliance warehouse. Two alternatives identified as Y and Z were under consideration. The overall rate of return on the $50,000 was determined to be 40%, with the rate of return on the $20,000 increment between Y and Z at 15%. 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: EM131163330

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