Jewel-Osco evaluated three different pay-by-touch systems that identify customers by a finger scan and then deduct the amount of the bill directly from their checking accounts. The alternatives were ranked according to increasing initial investment cost and identified as Alternative A, B, and C. Based on the incremental rates of return shown and the company’s MARR of 16% per year, the alternative that should be selected is: Comparison Rate of Return, % A to DN 23.4 B to DN 8.1 C to DN 16.6 A to B -5.1 A to C 12.0 B to C 83.9.
A) Alternative A. B) Alternative C. C) Alternative DN (do nothing). D) Alternative B.