Use the ERR method incrementally to decide whether project A or B should be recommended These are two mutually exclusive cost alternatives, and one of them must be selected MARR 10 per year Assume repeatability is appropriate for this comparison Alternative Capital investment Annual operating expense Useful life $100,000 $5,000 $5,000 $17,500 10 years None 20 years None Market (salvage) value

Question: Use the ERR method incrementally to decide whether project A or B should be recommended. These are two mutually exclusive cost alternatives, and one of

Use the ERR method incrementally to decide whether project A or B should be recommended. These are two mutually exclusive cost alternatives, and one of them must be selected. = ˆˆ = 10% per year. Assume repeatability is appropriate for this comparison.

Alternative в Capital investment Annual operating expense Useful life $100,000 $5,000 $5,000 $17,500 10 years None 20 y

Alternative Capital investment Annual operating expense Useful life $100,000 $5,000 $5,000 $17,500 10 years None 20 years None Market (salvage) value

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