If alternative A has = 10% and alternative B has = 18% per year, what is known about the rate of return on the increment between A and B if the investment required in B is (a) larger than that required for A, and (b) smaller than that re­quired for A?

What will be an ideal response?


(a) The rate of return on the increment has to be larger than 18%.
(b) The rate of return on the increment has to be smaller than 10%.

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Brake friction materials are being discussed. Technician A says semi-metallic materials are made from a mix of organic or synthetic fibers and metals molded together. Technician B says ceramic pads provide suitable life, provide good stopping, and reduce changes of fading, but they retain heat. Who is correct?

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