Question

When performing the "Incremental ROR analysis" of multiple mutually exclusive alternatives, the first step is to order all the alternatives from the largest to the smallest initial investment.

O True

O False

Answer 1

True

Step-by-step explanation:

Mutually exclusive is a situation where two projects cannot be incorporated together. These are independent projects which needs to be selected based on their risk and return. The first step is to list the projects according to their initial investments.