Five alternatives are being evaluated by the incremental rate of return method. Initial investment | Overall ROR Incremental ROR Alternative (TL) (%) (%) А B C E А -20.000 8.6 22.3 8.2 33.3 21.1 B -30.000 16.2 0.5 33.5 22.4 -40.000 13.4 36.5 27.3 D -50.000 24.4 6.8 E -60.000 20.7 If the projects are mutually exclusive and the MARR is 15% per year, what is the best alternative? O a. B O b. A O c. E O d. C O e. D
Five alternatives are being evaluated by the incremental rate of return method. Initial investment | Overall ROR Incremental ROR Alternative (TL) (%) (%) А B C E А -20.000 8.6 22.3 8.2 33.3 21.1 B -30.000 16.2 0.5 33.5 22.4 -40.000 13.4 36.5 27.3 D -50.000 24.4 6.8 E -60.000 20.7 If the projects are mutually exclusive and the MARR is 15% per year, what is the best alternative? O a. B O b. A O c. E O d. C O e. D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Engineering Economy
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![Five alternatives are being evaluated by the incremental rate of return method.
Initial investment | Overall ROR
(TL)
Incremental ROR
Alternative
(%)
(%)
A
B
C
E
A
-20.000
8.6
22.3
8.2
33.3
21.1
B
-30.000
16.2
0.5
33.5
22.4
-40.000
13.4
36.5
27.3
-50.000
24.4
6.8
E
-60.000
20.7
If the projects are mutually exclusive and the MARR is 15% per year, what is the best alternative?
О а. В
O b. A
О с.Е
O d. C
О е. D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6abed6a1-89fc-4825-b85a-eb403db0554e%2F25b8caf8-aff5-442b-8205-b531be9c9974%2Fn2y5vvh_processed.png&w=3840&q=75)
Transcribed Image Text:Five alternatives are being evaluated by the incremental rate of return method.
Initial investment | Overall ROR
(TL)
Incremental ROR
Alternative
(%)
(%)
A
B
C
E
A
-20.000
8.6
22.3
8.2
33.3
21.1
B
-30.000
16.2
0.5
33.5
22.4
-40.000
13.4
36.5
27.3
-50.000
24.4
6.8
E
-60.000
20.7
If the projects are mutually exclusive and the MARR is 15% per year, what is the best alternative?
О а. В
O b. A
О с.Е
O d. C
О е. D
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