The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown
Question:
The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown below for five mutually exclusive alternatives, one of which must be chosen. The table includes the overall ROR and the incremental comparison of alternatives. Which alternative is best if the minimum attractive rate of return is
(a) 15% per year
(b) 12% peryear?
Transcribed Image Text:
Incremental Rate of Re turn, % Overall Alternative Cost, $ ROR, % A B C D First -80,000 14 -60,000 16 12 12 1 17 24 14 23 21 -40,000 17 1435 29 30,000 12 17 23 35 17 20,000 8 24 2 29 17
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