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icantspeakengles
27.03.2020 •
Business
A company is considering two alternatives, one of which must be implemented. Of the two projects, A has the higher maintenance cost, but B has the higher investment cost. The appropriate (and properly calculated) incremental IRR is 17.6%. Which alternative is preferred if the Minimum Attractive Rate of Return is 20%.
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Ответ:
The company will choose A
Explanation:
Since the incremental IRR(A-B)=17.6% and MARR=20%, this indicates IRR is less then MARR (IRR<MARR). Hence the company will choose a over b.
Ответ: