Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C. Comparison i*, % Δi*, % A to DN 23.4 B to DN 8.1 C to DN 16.6 B vs. A −5.1 C vs. A 12.0 C vs. B 83.9 Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company’s MARR of 16% per year, the alternative to select is: (a) A (b) B (c) C (d) DN
Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C. Comparison i*, % Δi*, % A to DN 23.4 B to DN 8.1 C to DN 16.6 B vs. A −5.1 C vs. A 12.0 C vs. B 83.9 Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company’s MARR of 16% per year, the alternative to select is: (a) A (b) B (c) C (d) DN
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
Problem 1PS
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Jewel-Osco evaluated three different pay-by-touch
systems that identify a customer by a finger scan
and automatically deduct the amount of the bill directly
from their checking account. The revenue
alternatives were ranked according to increasing
initial investment and identified as alternatives A,
B, and C.
Comparison i*, % Δi*, %
A to DN 23.4
B to DN 8.1
C to DN 16.6
B vs. A −5.1
C vs. A 12.0
C vs. B 83.9
Based on the alternative ROR values (i*), the incremental
ROR values (Δi*), and the company’s
MARR of 16% per year, the alternative to select is:
(a) A
(b) B
(c) C
(d) DN
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