A В C D E - 15,000 - 70,000 First cost, $ Annual net income, Slyear - 10,000 -25,000 -50,000 2,000 4,000 2,900 10,000 6,000 Overall ROR, % 20 20 19.3 14.3 12

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
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Allstate Insurance Company is considering adopting one of five fraud detection systems, all of which can be considered to last indefinitely. If the company’s MARR is 14% per year, determine which one should be selected on the basis of a rate of return analysis.

A
В
C
D
E
- 15,000
- 70,000
First cost, $
Annual net income, Slyear
- 10,000
-25,000
-50,000
2,000
4,000
2,900
10,000
6,000
Overall ROR, %
20
20
19.3
14.3
12
Transcribed Image Text:A В C D E - 15,000 - 70,000 First cost, $ Annual net income, Slyear - 10,000 -25,000 -50,000 2,000 4,000 2,900 10,000 6,000 Overall ROR, % 20 20 19.3 14.3 12
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