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An entrepreneur has $100,000 is available for investment and Minimum Acceptable Rate of Return (MARR) = 17% per year. If the first alternative would earn

An entrepreneur has $100,000 is available for investment and Minimum Acceptable Rate of Return (MARR) = 17% per year. If the first alternative would earn him 45% per year on investment of $60,000, and the second alternative would earn him 30% per year on investment of $85,000. Considering their weighted averages (Overall ROR), which investment is economically better for him if they are mutually exclusive alternatives?

All alternatives

First alternative

None of the Alternatives

Second alternative

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