The following mutually exclusive investment alter-natives have been presented to you. (See Table P6-82.) The life of

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The following mutually exclusive investment alter-natives have been presented to you. (See Table P6-82.) The life of all alternatives is 10 years. After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of the following?
(a) C †’ B

(b) A †’ B

(c) D †’ E

(d) C †’ D

(e) D †’ C


Table P6-82:

Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR $40,000 25,000 38,000 10,000 30.8% $60,000

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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