The following data related to two mutually exclusive projects are given Which of the following statement is true about the incremental rate of return Alternative Initial Investment ROR A $40,000 23 B $10,000 18 answer is The ROR is greater than 23 ( please show how did they get the answer ) A The RoR is less than 23 B The RoR is greater than 23 C The RoR is between 18 and 23 D Insufficient data

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Question: The following data related to two mutually exclusive projects are given. Which of the following statement is true about the incremental rate of return? Alternative

The following data related to two mutually exclusive projects are given. Which of the following statement is true about the incremental rate of return?

Alternative	Initial Investment	ROR
A	$40,000	23%
B	$10,000	18%

answer is The ROR is greater than 23% ( please show how did they get the answer )

A. The RoR is less than 23%

B. The RoR is greater than 23%

C. The RoR is between 18% and 23%

D. Insufficient data

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