In an incremental investment rate of return analysis of multiple mutually exclusive alternatives that have different lives, the incremental investment cash flow must extend through: B) The least common multiple of the lives of the two alternatives under consideration.
What is the incremental investment rate of return analysis?
In an incremental investment rate study of multiple together exclusive alternatives that have various lives, the incremental financing cash flow must longer through the common growth of the alternatives. This is because the IRR is a rate of return that is to say calculated established the cash flows of an investment over allure entire history.
So, If the incremental cash flows extend further the common history, they will not be reflected in the IRR prediction and may deform the results.
See text below
n an incremental investment rate of return analysis of multiple mutually exclusive alternatives that have different lives, the incremental investment cash flow must extend through: A)The life of the longer of the two alternatives under consideration B)The least common multiple of the lives of the two alternatives under consideration C) The longest life of all of the alternatives under consideration D) The least common multiple of the lives of all of the alternatives under consideration