Question: Use Rate of Return Analysis to determine whether Alternative A or B should be chosen. Assume the MARR is 6% per year, compounded annually. Alternative

Use Rate of Return Analysis to determine whether Alternative A or

Use Rate of Return Analysis to determine whether Alternative A or B should be chosen. Assume the MARR is 6% per year, compounded annually. Alternative B should be chosen, because the incremental rate of return of B-A is 0.75%, which is less than the MARR Alternative B should be selected because its rate of return is 4.39%, which is less than the MARR Alternative A should be selected because its rate of return is 6.84%, which is greater than the MARR Alternative A should be chosen, because the incremental rate of return of B-A is 0.75%, which is less than the MARR

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