The document discusses incremental return on investment (ROI) and discounted cash flow rate of return (DCFRR) analysis for evaluating mutually exclusive investment alternatives. It explains that the alternative with the largest investment should be selected if the incremental ROI or DCFRR is greater than or equal to the minimum acceptable rate of return (MARR), as this means the extra investment is justified. Ranking rules are provided to systematically compare alternatives using incremental analysis and select the option with the highest ROI or DCFRR.