**Question 21**| Alternative | Initial Investment, $ | r*, % | Incremental ROR, %, when Compared with Alternative ||-------------|------------------------|-------|--------------------------------------------------|| A | -25,000 | 9.6 | — | 27.3 | 19.4 | 35.3 | 25.0 || B | -35,000 | 15.1 | | — | 0 | 38.5 | 24.4 || C | -40,000 | 13.4 | | | — | 46.5 | 27.3 || D | -60,000 | 25.4 | | | | — | 26.8 || E | -75,000 | 20.2 | | | | | — |If the alternatives are mutually exclusive and the MARR (Minimum Attractive Rate of Return) is 15% per year, the alternative to select is ____________.---**Explanation:**The table represents a comparison of different investment alternatives (A, B, C, D, E) based on initial investment, rate of return (r*), and incremental rate of return (ROR) when compared to other alternatives.- **Initial Investment**: The upfront cost required for each alternative.- **r***: The expected rate of return for each alternative.- **Incremental ROR**: The percentage by which the return on one alternative exceeds another, used for comparison.The solver needs to choose the alternative that maximizes return above the MARR of 15%, while considering potential alternatives may be mutually exclusive, meaning only one can be chosen. The image displays a series of multiple-choice options with radio buttons for selection. Below are the options listed:1. Option with a radio button labeled "Either B, D, or E."2. Option with a radio button labeled "Only B."3. Option with a radio button labeled "Only D."4. Option with a radio button labeled "Only E."There are no graphs or diagrams present in the image.

An alternative is economically viable if its individual rate to return (ROR) is greater than MARR.…

Alternative A ABCDE Initial Investment, Alternative $ -25,000 -35,000 -40,000 -60,000 -75,000 9.6 15.1 13.4 25.4 20.2 Incremental ROR, %, when Compared with Alternative A B C D E 27.3 19.4 35.3 25.0 O 38.5 24.4 46.5 27.3 26.8 If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is

Alternative A ABCDE Initial Investment, Alternative $ -25,000 -35,000 -40,000 -60,000 -75,000 9.6 15.1 13.4 25.4 20.2 Incremental ROR, %, when Compared with Alternative A B C D E 27.3 19.4 35.3 25.0 O 38.5 24.4 46.5 27.3 26.8 If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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