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Data for Problems 8-1 to 8-3 Cash flows related to three mutually exclusive capital equipment projects are given in table below. Alternative Initial Cost Computed
Data for Problems 8-1 to 8-3 Cash flows related to three mutually exclusive capital equipment projects are given in table below. Alternative Initial Cost Computed ROR $100,000 18% B $200,000 15% C $300,000 13% Problem 8-1 ARIR for the first increment (alt.B - alt.A) is A. 10.2% B. 12% C. 14.67% D. 15.5% Problem 8-2 AROR for the second increment (C-) is A. 10.2% B. 18.6% C. 14.67% D. 9.0% Problem 8-3 AROR for the increment (C-A) is A. 12.3% B. 10.5% C. 14.67% D. 15.5%
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