Consider the following table which shows information for five mutually exclusive alternatives. The MARR is 15%:YearABCDE0-400-300-100-500-20011268335150692126833515069312683351506941268335150695126833515069PWB422278117503231B/C1.060.931.171.011.16ROR17.3%11.9%22.115.2%21.4%Based on this information, what would be ROR for the first increment using ROR analysis? answer in percent to the nearest 0.1 percent. Assume you don't need to do more calculations than necessary.

To perform the incremental rate of return analysis, first, arrange the alternative in ascending…

Answered: Consider the following table which…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following table which shows information for five mutually exclusive alternatives. The MARR is 15%:

Year	A	B	C	D	E
0	-400	-300	-100	-500	-200
1	126	83	35	150	69
2	126	83	35	150	69
3	126	83	35	150	69
4	126	83	35	150	69
5	126	83	35	150	69
PWB	422	278	117	503	231
B/C	1.06	0.93	1.17	1.01	1.16
ROR	17.3%	11.9%	22.1	15.2%	21.4%

Based on this information, what would be ROR for the first increment using ROR analysis? answer in percent to the nearest 0.1 percent. Assume you don't need to do more calculations than necessary.

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