An investor with a MARR of 15% and at least $50k to invest is using rate of return analysis to determine which, if either, of two mutually exclusive investment alternatives (X and Y) should be selected. Perform the analysis and make a recommendation.

Alternative	X	Y
Initial cost ($k)	50	45
Rate of Return (%)	30	32
Life (years)	6	6

Assume that the ROR of the incremental difference (X - Y) is 10%.

a) Choose Y because the incremental ROR < MARR

b) Choose X because the incremental ROR > 0

c) Choose Y because the ROR of Y is greater than the ROR of X

d) Choose neither