The rates of return on alternatives x and y are 15 and 20, Finance Basics

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The rates of return on alternatives x and y are 15 and 20

Question: The rates of return on alternatives X and Y are 15% and 20%, respectively. Alternative Y requires a larger investment than alternative X.

a. What is known about the rate of return on the increment of investment between the two alternatives?

b. If the MARR is 12%, which alternative should be selected and why?

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Finance Basics: The rates of return on alternatives x and y are 15 and 20

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Finance Basics: The rates of return on alternatives x and y are 15 and 20

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