Question: Five alternatives are being evaluated: Incremental ROR Initial Investment Alternative A Overall ROR versus DN 9.60% 15.10% 13.40% A B C D E 27.30% 9.40%

Five alternatives are being evaluated: Incremental ROR Initial Investment Alternative A Overall ROR versus DN 9.60% 15.10% 13.40% A B C D E 27.30% 9.40% 35.30% 25.00% 0.00% 38.50% 24.40% 46.50% 27.30% B S-25,000 S-35,000 S-40,000 S-60,000 S-75,000 D 6.80% 25.40% 20.20% E If the projects are mutually exclusive and the minimum attractive rate of retum is 14% per year, what is the best alternative? OD OB If the projects are independent and the minimum attractive rate of return is 18% per year, what is the best alternative? O Band C OD and E O B, C and E OB, D and E
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