Assume alternatives A and B are being evaluated by the rate of return method against a MARR of 15% per year. Alternative B requires a higher initial investment than A and the i* values are * Ai = 20% and * Bi = 16% per year. Under what circumstance is alternative B the preferred choice?

What will be an ideal response?


Alternative B is preferred if the rate of return on the increment of investment between
A and B is ? MARR.

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What will be an ideal response?

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What will be an ideal response?

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