An entrepreneur has $200,000 is available for investment and Minimum Acceptable Rate of Return (MARR) 17% per year, If the first alternative would eam him 25% per year on investment of $90,000, and the second alternative would earn him 30% per year on investment of $85,000. Considering their weighted averages (Overall ROR), which investment is economically better for him if they are mutually exclusive alternatives? All of the alternatives None of the alternatives Second alternative First alternative

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An entrepreneur has $200,000 is available for investment and Minimum Acceptable Rate of Return (MARR) 17% per year, If the first alternative
would eam him 25% per year on investment of $90,000, and the second alternative would earn him 30% per year on investment of $85,000.
Considering their weighted averages (Overall ROR), which investment is economically better for him if they are mutually exclusive alternatives?
All of the alternatives
None of the alternatives
Second alternative
First alternative
Transcribed Image Text:An entrepreneur has $200,000 is available for investment and Minimum Acceptable Rate of Return (MARR) 17% per year, If the first alternative would eam him 25% per year on investment of $90,000, and the second alternative would earn him 30% per year on investment of $85,000. Considering their weighted averages (Overall ROR), which investment is economically better for him if they are mutually exclusive alternatives? All of the alternatives None of the alternatives Second alternative First alternative
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