05-07. The following five alternatives are being evaluated by the rate of return method. Incremental rate of Retum, % Initial Rate of Return When compared to Alternative Alternative Investments for Alternative (%) ABCDE -25,000 9.6 28.9 19.7 36.7 25.5 -35,000 15.1 1.5 38.9 14.7 -40,000 13.4 49428.0 -60,000 24.4 -0.6 -75000 20.2 05. If the alternatives are mutually exclusive and the MARR is 15% per year, which alternatives are not feasible? a. Only A b. Both D and E cc. Both A and C d. Only DeNone 06. With an MARR of 15% per year, which alternative should be selected? a. D and E b. Only B o. Only D d. Only AeNone 07. If alternatives A through E were independent projects, the MARR is 15% per year, and a budget constraint of $160,000 is in effect, which projects should be selected? a. A, B, C, and D b. A, D, and E C. B, C, and D only d. B and D only e. D and E only 08. The perpetual annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing forever at 12% per year is closest to: A. $4200 B. $8650 C. $9655 D. $10,655 09. If you invest $5,123 in a venture nowand will receive $1,110 per year for the next 20 years, assuming 10% interest, what is the discounted payback period for your investment? A. 9 years B. 8 years C. 7 years E. 5 years D. 6 years