Question: The five alternatives shown below are being evaluated by the rate of return method. 1. If the alternatives are mutually exclusive and the MARR is
The five alternatives shown below are being evaluated by the rate of return method. 1. If the alternatives are mutually exclusive and the MARR is 26% per year, the alternative to select is: (a) Alt B (b) Alt C (c) Alt D (d) Alt E (e) None of them 2. If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is: (a) Alt B (b) Alt C (c) Alt D (d) Alt E (e) Any of them 3. If benefits are $10,000 per year forever, starting in year 1, and costs are $50,000 at time zero and $50,000 at the end of year 2, the B/C ratio at i = 10% per year is closest to: (a) 1.1 (b) 1.8 (c) 0.90 (d) Less than 0.75 (e) Over 2.5 The data below are for a study period of 10-years and an interest rate of 10% per year
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