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What is known about the rate of return on the increment

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Reference no: EM13881964

The rates of return on alternatives X and Y are 15% and 12%, 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?

Reference no: EM13881964

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