A chemical engineer working for a large chemical
products company was asked to make a recommendation
about which of three mutually exclusive
revenue alternatives should be selected for improving
the marketability of personal care products
used for conditioning hair, cleansing skin, removing
wrinkles, etc. The alternatives (X, Y, and Z)
were ranked in order of increasing initial investment and then compared by incremental rate of return
analysis. The rate of return on each increment of
investment was less than the company’s MARR of
17% per year. The alternative to select is:
(a) DN
(b) Alternative X
(c) Alternative Y
(d) Alternative Z
