he results of a study are summarised below: Alternative IRR Incremental IRR Apples Bananas Carrots Dates Apples 14.2% - Bananas 16.35% 35 42%

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4: Preparing And Using Financial Statements
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The results of a study are summarised below:
Alternative
IRR
Incremental
IRR
Apples
Bananas
Carrots
Dates
Apples
14.2%
Bananas
16.35%
35.42%
Carrots
11.0%
19.64%
9.23%
Dates
8.32%
12.0%
15.61%
14.33%
Assuming a MARR of 11%, which alternative is the best option?
a) Apples
b) Bananas
c) Carrots
d) Dates
Transcribed Image Text:The results of a study are summarised below: Alternative IRR Incremental IRR Apples Bananas Carrots Dates Apples 14.2% Bananas 16.35% 35.42% Carrots 11.0% 19.64% 9.23% Dates 8.32% 12.0% 15.61% 14.33% Assuming a MARR of 11%, which alternative is the best option? a) Apples b) Bananas c) Carrots d) Dates
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