Solution-Which alternative is best if the minimum

Which alternative is best if the minimum attractive rate

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The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown below for fi ve mutually exclusive alternatives, one of which must be chosen. The table includes the overall ROR and the incremental comparison of alternatives. Which alternative is best if the minimum attractive rate of return is ( a ) 15% per year and ( b ) 12% per year?

			Incremental Rate of Return, %
Alternative	First Cost, $	Overall ROR, %	A	B	C	D	E
A	-80,000	14	-	12	11	17	24
B	-60,000	16	12	-	14	23	21
C	-40,000	17	11	14	-	35	29
D	-30,000	12	17	23	35	-	17
E	-20,000	8	24	21	29	17	-

Reference no: EM13882046

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Which alternative is best if the minimum attractive rate

Reference no: EM13882046

Reference no: EM13882046

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