Question
2. The manager at RoboCo is analyzing incremental rate of return information shown below for five mutually exclusive alternatives, one of which must be
2. The manager at RoboCo is analyzing incremental rate of return information shown below for five mutually exclusive alternatives, one of which must be chosen. The overall ROR and the incremental comparison of alternatives is given in the table below. Select the best alternative if the minimum attractive rate of return is a) 13% per year and b) 10% per year? Incremental Rate of Return, % First Overall Alternative Cost, $ ROR, % A BCD E A B -80,000 -60,000 - 40,000 14 12 11 17 24 16 12 14 23 21 17 11 35 29 14 D -30,000 - 20,000 17 23 35 17 12 24 21 29 17
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
16th edition
133439275, 133439274, 9780133819014 , 978-0133439274
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