Question: Please explain reasoning: Based on the incremental return shown and the companys MARR of 16% per year, the alternative that should be selected is _______________.
Please explain reasoning:
Based on the incremental return shown and the companys MARR of 16% per year, the alternative that should be selected is _______________.
The project initial costs are such that A < B < C.
| Comparison | Rate of Return, % |
| A to DN | 23.4 |
| B to DN | 8.1 |
| C to DN | 16.6 |
| A to B | -5.1 |
| A to C | 12.0 |
| B to C | 83.9 |
| Possible Answers: |
| Alternative A | |
| Cannot be determined. | |
| Do nothing | |
| Alternative B - this answer is incorre | |
| Alternative C |
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