For the four alternatives described in the table, which project or projects should be selected, using ROR method and MARR of 13% ? (Use only capital letters for alternatives names exactly as in table. For Ai*, use number followed by % immediately (no space)) 1- if they are independents: 2- If they are mutually exclusive: fill in the steps below based on the comparison with MARR = 13% Step 1: Exclude alternative from competition Overall Incremental Rate of Return, % First Alternative Cost, $ ROR, % A B -80,000 -60,000 - 40,000 -30,000 14 B 16 12 - Step 2: |(challenger) VS| 17 11 17 23 14 12 35 (defender), Ai* = -----> select

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Chapter1: Making Economics Decisions
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For the four alternatives described in the table, which project or
projects should be selected, using ROR method and MARR of 13% ?
(Use only capital letters for alternatives names exactly as in table.
For Ai*, use number followed by % immediately (no space))
1- if they are independents:
2- If they are mutually exclusive: fill in the steps below based on the
comparison with MARR = 13%
Step 1: Exclude alternative
Overall Incremental Rate of Return, %
ROR, % A
from competition
First
Alternative Cost, $
B
D
-80.000
14
-60.000
16
12
Step 2:
|(challenger) VS||
-40.000
17
11
14
17 23
D
-30,000
12
35
(defender), Ai* =
-----> select
Step 3:
( challenger) VS
(defender), Ai* =
select
Transcribed Image Text:For the four alternatives described in the table, which project or projects should be selected, using ROR method and MARR of 13% ? (Use only capital letters for alternatives names exactly as in table. For Ai*, use number followed by % immediately (no space)) 1- if they are independents: 2- If they are mutually exclusive: fill in the steps below based on the comparison with MARR = 13% Step 1: Exclude alternative Overall Incremental Rate of Return, % ROR, % A from competition First Alternative Cost, $ B D -80.000 14 -60.000 16 12 Step 2: |(challenger) VS|| -40.000 17 11 14 17 23 D -30,000 12 35 (defender), Ai* = -----> select Step 3: ( challenger) VS (defender), Ai* = select
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