For the four revenue alternatives below, use the ROR method results to determine: (a) Which one(s) to

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For the four revenue alternatives below, use the ROR method results to determine:

(a) Which one(s) to select, if MARR = 17% per year and the proposals are independent.

(b) Which one to select, if MARR = 14.5% per year and the alternatives are mutually exclusive.

A*% When Compared with Alternative Initlal Overall Alternative Investment, $ ROR, I*% A B A -60,000 11.7 B -90,000 22.2

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 24, 2018 11:08 AM

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For the four revenue alternatives below, use the ROR method results to determine: (a) Which one(s) to

Question:

A*% When Compared with Alternative Initlal Overall Alternative Investment, $ ROR, I*% A B A -60,000 11.7 B -90,000 22.2 43.3 -140,000 17.9 22.5 10.0 D -190,000 15.8 17.8 10.0 10.0

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a Select all proposals with overall ROR 17 Select B and ...View the full answer

Engineering Economy

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A% When Compared with Alternative Initlal Overall Alternative Investment, $ ROR, I% A B A -60,000 11.7 B -90,000 22.2 43.3 -140,000 17.9 22.5 10.0 D -190,000 15.8 17.8 10.0 10.0