Question: Based on the alternative ROR values (i*), the incremental ROR values (Îi*), and the companys MARR of 16% per year, the alternative to select is:

Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company€™s MARR of 16% per year, the alternative to select is:

(a) A

(b) B

(c) C

(d) DN


Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C.

Al“, % I*, % Comparison A to DN 23.4 B to DN 8.1 C to DN B vs. A C vs. A C vs. B 16.6 -5.1 12.0 83.9

Al, % I*, % Comparison A to DN 23.4 B to DN 8.1 C to DN B vs. A C vs. A C vs. B 16.6 -5.1 12.0 83.9

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