The incremental rate of return additional investment in alternative B.

illusiia

illusiia

Answered question

2021-08-18

The incremental rate of return additional investment in alternative B.

Answer & Explanation

Alannej

Alannej

Skilled2021-08-19Added 104 answers

Calculation:
Write the expression to calculate the additional investment for alternate B.
0=(I2I1)(1+i)n+(YX)((1+i)n1i)+(S2S1) ......(I)
Rewrite Equation (I).
0=(I2I1)(FP,i,6)+(YX)(FA,i,6)+(S2S1).
Conclusion:
The correct answer is option
(c) 0=(I2I1)(FP,i,6)+(YX)(FA,i,6)+(S2S1).

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