Question: 3.2Two hazardous environment facilities are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows First Cost Maintenance

 3.2Two hazardous environment facilities are evaluated, with the projected life of

3.2Two hazardous environment facilities are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows First Cost Maintenance & Operating Costs Annual Benefits Salvage Value Project life Alternative A $615,000 $10,000 $158,000 $65,000 10 Alternative B $300,000 $25,000 $92,000 -$5,000 The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected? a) List the table of Incremental Cash Flow based on the two alternatives [2 points] b) Calculate the Incremental IRR for the system investment [3 points] c) Which alternative should be chosen? Why? [1 points 1 point]

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