Amigo Mobility, which manufactures battery-powered mobility scooters, has $680,000 to invest. The company is considering three different battery projects that will yield the following rates of return: Deep cycle = 13% Wet/flooded = 33% Lithium ion = 23% The initial investment required for each project is $180,000, $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 %

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
icon
Related questions
Question

Q14. Amigo Mobility, which manufactures battery-powered mobility scooters, has $680,000 to invest. The company is considering three different battery projects that will yield the following rates of return:

Deep cycle = 13%

Wet/flooded = 33%

Lithium ion = 23%

The initial investment required for each project is $180,000, $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 %.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Investments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning