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An entrepreneur has $200,000 is available for investment and Minimum Acceptable Rate of Return (MARR) = 17% per year. If the first alternative would earn
An entrepreneur has $200,000 is available for investment and Minimum Acceptable Rate of Return (MARR) = 17% per year. If the first alternative would earn him 25% per year on investment of $90,000, 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?
None of the alternatives | ||
All of the alternatives | ||
Second alternative | ||
First alternative |
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