The table below provides cash flows for two mutually exclusive alternatives for developing a "Pay for Recreation" facility being considered by a county government in Georgia. If money can be borrowed issuing bonds at the rate of 7% per year, using the RoR analysis, find the attractive alternative between the two given proposals.
$$\begin{array} { | l | l | l | }
\hline \text { Year } & \text { Alt. A } & \text { Alt B } \
\hline 0 & - 1 \mathrm { OM } & - 37 \mathrm { M } \
\hline 1 - 10 & 1 \mathrm { M } & 4 \mathrm { M } \
\hline 11 - \infty & 1.5 \mathrm { M } & 2.5 \mathrm { M } \
\hline
\end{array}$$
A) Alt. A
B) Alt. B

Question

The table below provides cash flows for two mutually exclusive alternatives for developing a "Pay for Recreation" facility being considered by a county government in Georgia. If money can be borrowed issuing bonds at the rate of 7% per year, using the RoR analysis, find the attractive alternative between the two given proposals.
$$\begin{array} { | l | l | l | } 
\hline \text { Year } & \text { Alt. A } & \text { Alt B } \
\hline 0 & - 1 \mathrm { OM } & - 37 \mathrm { M } \
\hline 1 - 10 & 1 \mathrm { M } & 4 \mathrm { M } \
\hline 11 - \infty & 1.5 \mathrm { M } & 2.5 \mathrm { M } \
\hline
\end{array}$$
A) Alt. A
B) Alt. B

Quizplus · Accepted Answer

Alt. B has a higher RoR than Alt. A.

The Table Below Provides Cash Flows for Two Mutually Exclusive