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the four revenue alternatives described below are being evaluated by the rate of return method. If the alternatives are mutually exclusive , which one(s) should
the four revenue alternatives described below are being evaluated by the rate of return method. If the alternatives are mutually exclusive, which one(s) should be selected when the MARR is 15% per year?
Alternative | Initial Investment ($) | Overall Rate of Return | Incremental Rate of Return (%) When Compared with Alternative | ||
i* (%) | A | B | C | ||
A | -80,000 | 12 | |||
B | -110,000 | 25 | 42 | ||
C | -150,000 | 20 | 25 | 10 | |
D | -230,000 | 16 | 18 | 13 | 12 |
Question 19 options:
Select alternatives A, B, C, and D | |
Select only alternative C | |
Select only alternative B | |
Select only alternative D |
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