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The four revenue alternatives described below are being evaluated by the rate of return method. If the proposals are independent , which one(s) should be
The four revenue alternatives described below are being evaluated by the rate of return method. If the proposals areindependent, which one(s) should be selected when the MARR is 14% 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 |
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