Question: If alternative A has i* A = 10% and alternative B has i* B = 18% per year, what is known about the rate of

If alternative A has i*_A = 10% and alternative B has i*_B = 18% per year, what is known about the rate of return on the increment between A and B if the investment required in B is

(a) Larger than that required for A,

(b) Smaller than that required for A?

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