Selected using ror incremental analysis

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Reference no: EM132038013

The following three projects are available but because of resource limitations, only one can be done. The Do Nothing option is also available and the company MARR is 15%.

            F0                    F1                    F2                    F3                    F4                    F5

A          -$10,000          $5,000             $2,000             $2,500             $3,000             $3,100

B          -$7,000            $2,000             $2,500             $3,000             $2,000             $1,000

C         -$6,000            $2,000             $2,000             $2,500             $2,750             $3,000

a) Which project should be selected using ROR incremental analysis?

b) Which project should be selected using present worth incremental analysis?

Reference no: EM132038013

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