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If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative to select is

User Hung Tran
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Answer: Only Alternative B

Step-by-step explanation:

As the alternatives are mutually exclusive, the alternative to select would be the one that is superior to all of the others and above MARR.

B, C and D all have rates of return higher than MARR so they will pass the first step.

When C is compared to B, it has an incremental return of 10% which is less than the MARR so C will be discarded as B is a better option.

Now compare B with D. When D is compared to B, it has an incremental return of 13% which is less than the MARR so B is again superior.

Alternative B should therefore be chosen as it is better than the other options.

If the alternatives are mutually exclusive and the MARR is 15% per year, the alternative-example-1
User Jamesk
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