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What is known about the ror on the increment between a and b

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Reference no: EM13881967

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?

Reference no: EM13881967

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