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ven the following time events and incremental cash flow, if the MARR is 16% per year, which alternative should be selected on the basis of
ven the following time events and incremental cash flow, if the MARR is 16% per year, which alternative should be selected on the basis of rate of return? Assume alternative B requires the extra $10,000 initial investment. (You can use Excel).
Year | Incremental CFB-CFA |
0 | -10,000 |
1 | +2,500 |
2 | +2,500 |
3 | +2,500 |
4 | +2,500 |
5 | +5,000 |
Question 10 options:
The "Incremental ROR" is less than MARR, so select alternative A. | |
The "Incremental ROR" is more than MARR, so select alternative B. | |
The "Incremental ROR" is more than MARR, so select alternative A. | |
Select neither A nor B and go with "DN" |
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