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Type your answers rounded to the nearest whole percent using the following format (XX%) , without decimal places (i.1% write as 02%). Show your work...

 

Type your answers rounded to the nearest whole percent using the following format (XX%), without decimal places (i.e: 2.1% write as 02%). Show your work on your worksheet.

Alternative

A

B

C

Initial Cost

3000

3600

5020

Annual Savings

447

590

783

Lifetime (years)

10

10

10



Part 1) What is the rate of return for Option A? (XX%) :



Part 2) What is the rate of return for Option B? (XX%) :



Part 3) What is the rate of return for Option C? (XX%) :



Part 4) What is the incremental rate of return for Option B-A? (XX%) :



Part 5) What is the incremental rate of return for Option C-B? (XX%) :



Part 6) Which option do you recommend (type in the letter of the alternative A, B, or C) :

Top Answer

Hello, please download the... View the full answer

solutions.docx

solutions...
part 1) The formula of calculating the RATE OF RETURN is
RR= [(current value-original)/initial value]100
for Option A ;
RR= {[(447x10)-3000]/3000}x100
=49%
Part2) Option B;...

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Other Answers

Hello student, I can handle your question though it requires a lot of work for you to get the... View the full answer

1 comment
  • Please mark as unhelpful. Thanks.
    • ka_moderator
    • Jul 20, 2016 at 1:50pm

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