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Question
Amigo Mobility, which manufactures battery-powered mobility scooters, has $700,000 to invest. The company is considering three different battery projects that will yield the following rates of return:$ $\text{Deep cycle = 28\\%} \\ \text{Wet/flooded = 42\\%} \\ \text{Lithium ion = 19\\%}$ $The initial investment required for each project is$200,000, $100,000, and$400,000, respectively. If Amigo’s MARR is 15% per year and it invests in all three projects, what rate of return will the company make?
Solution
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 2ROR is calculated as the weighted average of the given rates of return.
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