Five alternatives are being evaluated by the incremental rate of return method.

Question

Five alternatives are being evaluated by the incremental rate of return method.

Incremental              rate         of     return,   %

Alt.

Initial   Investment

Overall   ROR VS DN, %

A

B

C

D

E

A

-25,000

9.6

-

27.3

9.4

35.3

25

B

-35,000

15.1

-

0

38.5

24.4

C

-40,000

13.4

-

46.5

27.3

D

-60,000

25.4

-

26.8

E

-75,000

20.2

-

If the projects are mutually exclusive and the minimum attractive rate of return (MARR) is 18% per year , the best alternative is:

Select one:

a. B

b. C

c. D

d. E

Incremental              rate         of     return,   %

Explanation / Answer

c. D

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.