Question
Initial investment A = $1,000, Initial investment B = $2,000, and Initial investment C = $3,000. DN= Do nothing. If the alternatives are mutually exclusive
Initial investment A = $1,000, Initial investment B = $2,000, and Initial investment C = $3,000. DN= Do nothing. If the alternatives are mutually exclusive and the MARR is 12% per year, which alternative(s) should be selected?
| Comparison | i*, % | i*, % |
| A to DN | 20 | - |
| B to DN | 10 | - |
| C to DN | 15 | - |
| B vs A | - | -10 |
| C vs A | - | 15 |
| C vs B | - | 85 |
| Alternative C | ||
| Alternative A | ||
| Alternative DN | ||
| Alternative B |
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Modern Internal Auditing An Operational Approach
Authors: Victor Zinn Brink
3rd Edition
0471065242, 978-0471065241
