For the four revenue alternatives below, use the ROR method results to determine:
(a) Which one(s) to select, if MARR = 17% per year and the proposals are independent.
(b) Which one to select, if MARR = 14.5% per year and the alternatives are mutually exclusive.
(c) Which one to select, if MARR = 10% per year and the alternatives are mutually exclusive.
 FIGURE 1.png)
(a) Select all proposals with overall ROR ? 17%
Select B and C
(b) Compare alternatives incrementally after ranking: DN, A, B, C, D
A to DN: ?i* = 11.7% < 14.5% Eliminate A
B to DN: ?i* = 22.2% > 14.5% Eliminate DN
C to DN: ?i* = 17.9% > 14.5% Eliminate DN
D to DN: ?i* = 15.8% > 14.5% Eliminate DN
Retain B, C, D
C vs. B: ?i* = 10.0% < 14.5% Eliminate C
D vs. B: ?i* = 10.0% < 14.5% Eliminate D
Select alternative B
(c) Compare alternatives incrementally after ranking: DN, A, B, C, D
A to DN: ?i* = 11.7% > 10.0% eliminate DN
B to A: ?i* = 43.3% > 10.0% eliminate A
C to B: ?i* = 10.0% = 10.0% eliminate B
D to C: ?i* = 10.0% = 10.0% eliminate C
Select alternative D
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