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The five alternatives shown below are being evaluated by the rate of return method. Incremental ROR when compared with alternative B 27.3 9.4 35.3 25
The five alternatives shown below are being evaluated by the rate of return method. Incremental ROR when compared with alternative B 27.3 9.4 35.3 25 Alt Initial Invest. S ROR vs DN.%) A C D E 25,000 35,000 -40,000 -60,000 75,000 9.6 15.1 13.4 25.4 20.2 1.5 38.5 24.4 46.5 27.3 6.8 If the projects are mutually exclusive and the Minimum Attractive Rate of Return is 9.2% per year, the best alternative is (a) Alt A (b) Alt B (c) Alt C (d) Alt D (e) Alt E
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