Two Mutually Exclusive Alternatives Are Being Compared

Multiple Choice

Two mutually exclusive alternatives are being compared. We should choose the alternative that

A) has a higher minimum acceptable rate of return assuming the lives of the alternatives are equal.
B) has a higher internal rate of return assuming the lives of the alternatives are equal.
C) has a higher internal rate of return regardless of the lives of the alternatives.
D) has an incremental investment with a rate of return equal to the minimum acceptable rate of return.
E) has an incremental investment with the rate of return exceeding minimum acceptable rate of return.