This chapter presents the methods by which two or more alternatives can be
evaluated using a rate of return (ROR) comparison based on the methods of
the previous chapter. The ROR evaluation correctly performed will result in
the same selection as the PW, AW, and FW analyses, but the computational
procedure is considerably different for ROR evaluations.
The first case study involves multiple options for a business owned for
many years by one person. The second case explores nonconventional cash
flow series with multiple rates of return and the use of the PW method in this
situation.
