Consider the following four mutually exclusive investment alternatives, and use the information in the following table to answer the following question. Select one: O a. [0%, 12.8596] O b. [0%. 10.53%) Project O c. [12.01%, 14.63%) O d. [8.98 %, 12.01%) A B C D Initial Investment ($) 100,000 145,000 200,000 300,000 ROR for Project % 8.98% Incremental ROR, %, when compared with project B C A 14.98% 28.9% 12.01% 15.48% 1.75% If the proposals are mutually exclusive, for what range of values of MARR is Alternative D the preferred alternative? 12.85% 15.06% 10.53% 14.63%

Consider the following four mutually exclusive investment alternatives, and use the information in the following table to answer the following question. Select one: O a. [0%, 12.8596] O b. [0%. 10.53%) Project O c. [12.01%, 14.63%) O d. [8.98 %, 12.01%) A B C D Initial Investment ($) 100,000 145,000 200,000 300,000 ROR for Project % 8.98% Incremental ROR, %, when compared with project B C A 14.98% 28.9% 12.01% 15.48% 1.75% If the proposals are mutually exclusive, for what range of values of MARR is Alternative D the preferred alternative? 12.85% 15.06% 10.53% 14.63%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following four mutually exclusive investment alternatives, and use the information
in the following table to answer the following question.
Project
Select one:
O a. [0%, 12.8596]
O b. [096., 10.5396]
O c. [12.0196, 14.63%]
O d. [8.98%, 12.0196]
A
B
C
D
Initial Investment ($)
100,000
145,000
200,000
300,000
ROR for
Project
%
8.98%
Incremental ROR, %, when
compared with project
B
с
A
14.98% 28.9%
12.01% 15.48% 1.75%
12.85% 15.06% 10.53% 14.63%
If the proposals are mutually exclusive, for what range of values of MARR is Alternative D the
preferred alternative?

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