Table 81
Cash Flows Related to Three Mutually Exclusive Capital Equipment

Table 8.1
Cash flows related to three mutually exclusive capital equipment projects are given in table below.
$$\begin{array} { | l | l | l | } \hline \text { Altermative } & \text { Iritial Cost } & \text { Computed ROR } \\\hline \text { A } & \$ 100,000 & 18 \% \\\hline \mathrm { B } & \$ 200,000 & 15 \% \\\hline \mathrm { C } & \$ 300,000 & 13 \% \\\hline\end{array}$$
-?RoR for the increment (C- A) is ___________

A) 12.3%
B) 10.5%
C) 14.67%
D) 15.5%

Correct Answer:

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