Question: You are comparing two mutually exclusive alternatives where only cost information is available. Indicate which of the following subsections is false if we make a

 You are comparing two mutually exclusive alternatives where only cost information

You are comparing two mutually exclusive alternatives where only cost information is available. Indicate which of the following subsections is false if we make a present value analysis of the investment increase (incremental analysis) at a given interest, MARR. Remember that the assumption inherent in this type of analysis is that the benefits will be the same regardless of the alternative selected. Select one: a. If the PW is less than zero, we select the alternative with the lowest initial investment. b. The rate of return on the investment increase must be higher than the MARR in order to justify spending on the more expensive alternative. c. None of the alternatives should be selected if there is only cost data because a rate of return cannot be calculated. d. If the resulting PW is greater than or equal to zero, we select the alternative that has the highest cost in the initial investment

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