QUESTION 7

1. Questions 7 through 9 are based on the following information:

   Alternative	Initial Investment,$	Alternative Overall Rate of Return, %	Incremental Rate Of Return in % When Compared with Alternative
   -----------	-------------	---------------	A	B	C
   			----------------------
   A	- 40,000	29
   B	- 75,000	15	1
   C	-100,000	16	7	20
   D	-200,000	14	10	13	12

   If the alternatives are independent, which should be selected if the company's MARR is 15% per year?

   (Explain)

   		Only alternative A
   		Alternatives A and B
   		Alternatives A and C
   		Alternatives A, B, and C

9 points

QUESTION 8

1. If the alternatives are mutually exclusive and the company's MARR is 11% per year, which alternative(s) should be selected?

   (Include procedure and result)

   		A, B, C, and D
   		Only A
   		Only D
   		Only A and C

9 points

QUESTION 9

1. If the alternatives are mutually exclusive and the company's MARR is 10% per year, which alternative(s) should be selected? (Include procedure and result)

   		A, B, C, and D
   		Only, A, B, and C
   		Only A
   		Only D