Amigo Mobility, which manufactures battery-powered mobility scooters, has $670,000 to invest. The company is considering three different battery projects that will yield the following rates of return: Deep cycle = 17% Wet/flooded = 49% Lithium ion = 19% The initial investment required for each project is $170,000, $100,000, and $400,000, respectively. If Amigo’s invests in all three projects, what will be its overall rate of return? The rate of return is __ %
Amigo Mobility, which manufactures battery-powered mobility scooters, has $670,000 to invest. The company is considering three different battery projects that will yield the following rates of return: Deep cycle = 17% Wet/flooded = 49% Lithium ion = 19% The initial investment required for each project is $170,000, $100,000, and $400,000, respectively. If Amigo’s invests in all three projects, what will be its overall rate of return? The rate of return is __ %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Amigo Mobility, which manufactures battery-powered mobility scooters, has $670,000 to invest. The company is considering three different battery projects that will yield the following
Deep cycle = 17%
Wet/flooded = 49%
Lithium ion = 19%
The initial investment required for each project is $170,000, $100,000, and $400,000, respectively. If Amigo’s invests in all three projects, what will be its overall rate of return?
The rate of return is __ %
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