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Problem 3. The following four alternatives are given with computed rate of return based on infinite lives for all. Determine the incremental rate of return
Problem 3. The following four alternatives are given with computed rate of return based on infinite lives for all. Determine the incremental rate of return comparing pairs in increasing initial cost and determine the best alternative if minimum attractive rate of return is 15%. Data Initial Cost Annual Benefit Computed ROR A $10K $2K 20% B $18K $3K 16.67% $25K $4.5K 18% D $30K $5K 16.67%
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