Rate of return for alternative-for incremental difference

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Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. What is the rate of return for each alternative and for the incremental difference? If the interest rate is 10%, which alternative should be selected? Use a 6-year time horizon.

Reference no: EM131316168

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Rate of return for alternative-for incremental difference : Alternatives A and B require investments of $10,310 and $13,400, respectively. Their respective net annual cash inflows are $3,300 and $4,000. What is the rate of return for each alternative and for the incremental difference? If the interest rate is..

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