. Based on the incremental rates of return shown and the company?s MARR of 16% per year, the alternative that should be selected is (Show your work)
a. Alternative A.
b. Alternative B.
c. Alternative C.
d. Alternative DN.
|Comparison||Rate of Return, %|
The answer is b.
We can use the minimum acceptable rate of return (MARR) and the incremental IRR to rank different projects. Specifically, a project Y