Minimum attractive rate of return

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Reference no: EM131810836

Consider two mutually exclusive alternatives stated in Year-0 dollars. Both alternatives have a 3-year life with no salvage value. Assume the annual inflation rate is 5%, an income tax rate of 25%, and straightline depreciation. The minimum attractive rate of return (MARR) is 7%. Use rate of return analysis to determine which alternative is preferable

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Reference no: EM131810836

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