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The four alternatives described below are evaluated by the rate of return method. Alternative Initial Investment, $ Overall ROR, i * % i* % When

The four alternatives described below are evaluated by the rate of return method.

Alternative Initial Investment, $ Overall ROR, i*% i*% When Compared with Alternative
A B C
A 40,000 29 - - -
B 75,000 15 1 - -
C 100,000 16 7 20 -
D 200,000 14 10 13 12

Problem 08.037.b - Determine which mutually exclusive alternative should be selected

If the proposals are mutually exclusive, which one should be selected at an MARR of 9% per year?

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