MARR = 16% per year, and the alternatives are mutually exclusive. You are supposed to select: Incremental ROR, %, When Compared with Alternative Initial Alternative Alternative Investment, $ s*, % A B C D DE A -25,000 9.6 - 27.3 19.4 35.3 25.0 B -35,000 15.1 - - 0 38.5 24.4 C -40,000 13.4 - 46.5 27.3 Ꭰ -60,000 25.4 26.8 E -75,000 20.2 O Only E Only D DN Either D or E

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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MARR = 16% per year, and the alternatives are mutually exclusive. You are supposed to select:
Incremental ROR, %,
When Compared with
Alternative
A B C D E
Initial
Alternative
Alternative Investment, $
s*, %
A
-25,000
9.6
-
BCDE
B
-35,000
15.1
-40,000
13.4
Ꭰ
-60,000
25.4
-75,000
20.2
27.3 19.4 35.3 25.0
-
0 38.5 24.4
-
46.5 27.3
-
26.8
Only E
Only D
DN
Either D or E
Transcribed Image Text:MARR = 16% per year, and the alternatives are mutually exclusive. You are supposed to select: Incremental ROR, %, When Compared with Alternative A B C D E Initial Alternative Alternative Investment, $ s*, % A -25,000 9.6 - BCDE B -35,000 15.1 -40,000 13.4 Ꭰ -60,000 25.4 -75,000 20.2 27.3 19.4 35.3 25.0 - 0 38.5 24.4 - 46.5 27.3 - 26.8 Only E Only D DN Either D or E
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