Question
20*The four revenue alternatives described below are beingevaluated by the rate of return method. If the proposals areindependent, which one(s) should be selected when the
20*The four revenue alternatives described below are beingevaluated by the rate of return method. If the proposals areindependent, which one(s) should be selected when the MARR is 16%per year? Alternative Initial Investment ($) Overall Rate of ReturnIncremental Rate of Return (%) When Compared with Alternative i*(%) A B C A -60,000 15 B -100,000 28 46 C -180,000 20 25 12 D-250,000 17 20 16 14
20*The four revenue alternatives described below are beingevaluated by the rate of return method. If the proposals areindependent, which one(s) should be selected when the MARR is 16%per year? Alternative Initial Investment ($) Overall Rate of ReturnIncremental Rate of Return (%) When Compared with Alternative i*(%) A B C A -60,000 15 B -100,000 28 46 C -180,000 20 25 12 D-250,000 17 20 16 14
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Market Practice In Financial Modelling
Authors: Tan Chia Chiang
1st Edition
9789814366540
