Incremental Rate of Return, %, When Compared with Alternative Initial Alternative Alternative Investment, $ Rate of Return, % A в C D E A 28.9 25.5 -25,000 -35,000 -40,000 -60,000 -75,000 9.6 19.7 36.7 - В 15.1 1.5 39.8 24.7 13.4 49.4 28.0 - 25.4 -0.6 - E 20.2 -

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is:

Incremental Rate
of Return, %, When
Compared with
Alternative
Initial
Alternative
Alternative
Investment, $
Rate of Return, %
A
B
C D
E
A
-25,000
-35,000
-40,000
-60,000
-75,000
9.6
28.9
19.7
36.7
25.5
15.1
1.5
39.8
24.7
-
C
13.4
49.4
28.0
-
25.4
-0.6
-
E
20.2
Transcribed Image Text:Incremental Rate of Return, %, When Compared with Alternative Initial Alternative Alternative Investment, $ Rate of Return, % A B C D E A -25,000 -35,000 -40,000 -60,000 -75,000 9.6 28.9 19.7 36.7 25.5 15.1 1.5 39.8 24.7 - C 13.4 49.4 28.0 - 25.4 -0.6 - E 20.2
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