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The four alternatives described below are evaluated by the rate of return method. Alternative Initial Investment, $ Ove...

The four alternatives described below are evaluated by the rate of return method. Alternative Initial Investment, $ Overall ROR, i*% Δi*% 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 If the proposals are mutually exclusive, which one should be selected at an MARR of 9% per year? Alternative should be selected.

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Answer #1

Rank the alternatives: Peoposal A is justified sine 29% 7 MARR of 99 .. elem Eliminate RoR. A vs B yields 15. CMRR, MARR, a.

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