Question: The incremental cash flow between two alternatives is shown below: The equation(s) that can be used to correctly solve for the incremental rate of return,

 The incremental cash flow between two alternatives is shown below: The

The incremental cash flow between two alternatives is shown below: The equation(s) that can be used to correctly solve for the incremental rate of return, Delta i, is(are): A. -25,000 + 3000(P/A, Delta i, 10) + 400 (P/F, Delta i, 10) = 0 B. -25,000 (A/P, Delta i, 10) + 3000 + 400 (A/F, Delta i, 10) = 0 C. -25,000 (F/P, Delta i, 10) + 3000 (F/A, Delta i, 10) + 400 = 0 D. All of the above For a market interest rate of 16% per year, compounded semiannually; and an inflation rate of 2% per 6 months, the effective semiannual real interest rate is closest to? A. 6% B. 4% C. 3% D. 2% Formula used: _____

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