The incremental cash flow between two alternatives is shown below. The equation that can be used to correctly solve for the incremental rate of return is:

(a) 0 = −20,000 + 3000(A∕P,Δi*,10) + 400(P∕F,Δi*,10)

(b) 0 = −20,000 + 3000(A∕P,Δi*,10) + 400(A∕F,Δi*,10)

(c) 0 = −20,000(A∕P,Δi*,10) + 3000 + 400(P∕F,Δi*,10)

(d) 0 = −20,000(F∕P,Δi*,10) + 3000(F∕A,Δi*,10) + 400

Year.................................... Incremental Cash Flow, $
0 ....................................................... −20,000
1................................................... –10 +3,000
10 .......................................................... +400