If ARORA-B =8%, which is > MARR of 6%, then we will keep project A and drop project B, even though the ROR of project A = 6.5% < 9% ROR of project B. A. True B. False

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3E
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B. IFARORA-B=8%, which is > MARR of 6%, then we will keep project A and drop project
B, even though the ROR of project A = 6.5% < 9% ROR of project B.
A. True
%3D
B. False
Transcribed Image Text:B. IFARORA-B=8%, which is > MARR of 6%, then we will keep project A and drop project B, even though the ROR of project A = 6.5% < 9% ROR of project B. A. True %3D B. False
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