Question: Please answer 4 and 5, and please show your thought process, I am extremely confused. 2). The five alternatives are being evaluated by the rate
2). The five alternatives are being evaluated by the rate of return method, using the following information: Initial investments Individual ROR Rate ofReturn.% Incremental RoR, %, when compared with alternative V WX YZ Alternative - 27.3 19.4 35.3 25.0 -25,000 35,000 40,000 -60,000 -75,000 9.6 15.1 13.4 25.4 20.2 - 0.0 38.5 24.4 -46.5 27.3 .6.8 If the alternatives are independent and MARR-20% per year, which alternative (s) should be selected? A. W, Y and Z B Y and Z C. Y only D. None of the preceding lfalternatives Wand Y are mutually exclusive and MARR-16% per year, which one of the two alternatives is preferable? s ateratve WB. altenative x C. both are equally good D. neither one is good B. alternative X Alternative W is contingent on Y; and V, X, Y, Z are independent; which alternative (s) should be selected if MARR = 14% per year,? A. only Y 5). B. Y and w C. W, Y and Z D. W.X, Y and Z Note: Questions 3-s could apply to Benefit/Cost ratios. In that case, ROR figures in the table (2) would be one order of magnitude lower; that is, one-tenth. MARR hos
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