ZipCar auto parts store has $92,000 to invest in a project to detect and reduce insier theft in their stores. They have considering investing in one of two alternatives, identified as Y and Z. Z is the higher first-cost alternative, and the incremental initial investment between the two is $34,000 and will exhibit a rate of return of 20% per year. Z requires an investment of $92,000. They expect a rate of return on the S92000 investment of 34 percent. Answer the following questions: (a) what is the size of the investment required in Y?, and,
(b) what is the rate of return on Y?
The size of the investment required in Y is.
The rate of return on Y is.

Solution :

a). The investment size -- Y

As we know, Z has higher a first cost alternative and also the incremental difference is 34,000. Therefore, the investment of Y is lower than that of Z by 34,000. Thus, the investment of Y = $ 92,000 - $ 34,000

                                                         = $ 58,000

b). Rate of return for Y

The question also mentions that the incremental 34,000 returned only 20 % while Z cumulatively generated 34%

Therefore,   34,000 at the rate of 20% return =

                   92,000 at the rate of 34% return =

The difference between the 92,000 and 32,000 is the investment of Y i.e. 58,000. Thus we check the difference between the 40800 and 123280 to find out how much 58000 (Y's investment ) would have generated.

123480 - 40800 = 82,480

Therefore, the return of Y is 42.03%

answer: heh

explanation:

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!