Problems 6.67 and 6.68 are based on the following data. The five alternatives are being evaluated by the rate of return method. Ai*, %, when Compared with Proposal Initial Overall Proposal Investment, $ i*, % В C D E A -25,000 9.6 27.3 19.4 35.3 25.0 B -35,000 15.1 38.5 24.4 -40,000 13.4 46.5 27.3 D -60,000 25.4 26.8 -75,000 20.2

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If the alternatives are independent and the MARR is 15% per year, the one(s) that should be selected is (are):
a. only D
b. only D and E
c. only B, D, and E
d. only E

Problems 6.67 and 6.68 are based on the following data.
The five alternatives are being evaluated by the rate of return method.
Ai*, %, when
Compared with Proposal
Initial
Overall
Proposal
Investment, $
i*, %
В
C
D
E
A
-25,000
9.6
27.3
19.4
35.3
25.0
B
-35,000
15.1
38.5
24.4
-40,000
13.4
46.5
27.3
D
-60,000
25.4
26.8
-75,000
20.2
Transcribed Image Text:Problems 6.67 and 6.68 are based on the following data. The five alternatives are being evaluated by the rate of return method. Ai*, %, when Compared with Proposal Initial Overall Proposal Investment, $ i*, % В C D E A -25,000 9.6 27.3 19.4 35.3 25.0 B -35,000 15.1 38.5 24.4 -40,000 13.4 46.5 27.3 D -60,000 25.4 26.8 -75,000 20.2
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