Question: 1 . Mr . X owns a 9 - acre land in the heart of Bemidji city. He is willing to build either a fast

1. Mr. X owns a 9-acre land in the heart of Bemidji city. He is willing to build either a fast-food restaurant or a Gas station on this land. He wants a minimum attractive rate of return on his investment of 15%. Using incremental rate of return analysis, which of the two alternatives would you recommend? Both alternatives have a 20-year life and no salvage value.

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