Five alternatives are being evaluated by the incremental rate of return method. Initial investment Overall ROR (TL) Alternative Incremental ROR (%) (%) A B C E -23.000 9.6 12.3 8.2 23.3 31.1 -37.000 12.2 5.2 23.5 22.4 -42.000 17.4 6.5 27.3 D -50.000 14.4 9.8 E -75.000 25.7 If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative? O a. B O b.C OcD O d. E
Five alternatives are being evaluated by the incremental rate of return method. Initial investment Overall ROR (TL) Alternative Incremental ROR (%) (%) A B C E -23.000 9.6 12.3 8.2 23.3 31.1 -37.000 12.2 5.2 23.5 22.4 -42.000 17.4 6.5 27.3 D -50.000 14.4 9.8 E -75.000 25.7 If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative? O a. B O b.C OcD O d. E
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 7E
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Question
![Five alternatives are being evaluated by the incremental rate of return method.
Initial investment Overall ROR
(TL)
Alternative
Incremental ROR
(%)
(%)
B
E
-23.000
9.6
12.3
8.2
23.3
31.1
-37.000
12.2
5.2
23.5
22.4
-42.000
17.4
6.5
27.3
D
-50.000
14.4
9.8
E
-75.000
25.7
If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative?
O a. B
O b.C
O c.D
Od.E
e. A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd044ad48-cbd0-40aa-a13c-26b45cc75742%2F6a1ee73c-ad0c-4427-91dc-2061ebfe046d%2Fpqp0u8g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Five alternatives are being evaluated by the incremental rate of return method.
Initial investment Overall ROR
(TL)
Alternative
Incremental ROR
(%)
(%)
B
E
-23.000
9.6
12.3
8.2
23.3
31.1
-37.000
12.2
5.2
23.5
22.4
-42.000
17.4
6.5
27.3
D
-50.000
14.4
9.8
E
-75.000
25.7
If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative?
O a. B
O b.C
O c.D
Od.E
e. A
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