Victoria is comparing two mutually exclusive alternatives, A and B. The overall ROR on alternative A is

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Victoria is comparing two mutually exclusive alternatives, A and B. The overall ROR on alternative A is greater than the MARR, and the overall ROR on alternative B, which requires the larger investment, is exactly equal to the MARR.
(a) What is known about the ROR on the increment between A and B?
(b) Which alternative should be selected?
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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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