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Q.3. One of five mutually exclusive alternatives are given in Table below must be selected. These are listed in ascending order of investment size. Each

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Q.3. One of five mutually exclusive alternatives are given in Table below must be selected. These are listed in ascending order of investment size. Each has a life of ten years and zero salvage. Before tax RORs are given below. A B C D Alternative A B D E 0 30% 21% 22% 22% 22% 24% 23% 20% 22.5% 20% 16% 19% 14% 18% 28% i. Make a choice table for all positive BTRR possibilities. ii. If the zero investment alternative, O is added how would you respond to part (i). (7) Q.3. One of five mutually exclusive alternatives are given in Table below must be selected. These are listed in ascending order of investment size. Each has a life of ten years and zero salvage. Before tax RORs are given below. A B C D Alternative A B D E 0 30% 21% 22% 22% 22% 24% 23% 20% 22.5% 20% 16% 19% 14% 18% 28% i. Make a choice table for all positive BTRR possibilities. ii. If the zero investment alternative, O is added how would you respond to part (i). (7)

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