Question: 3There are two mutually exclusive project, where the basic information is provided below. Assume a DN alternative does not exist. Initial Cost Annual net profit

 3There are two mutually exclusive project, where the basic information is

3There are two mutually exclusive project, where the basic information is provided below. Assume a DN alternative does not exist. Initial Cost Annual net profit $6,000 Useful Life $35,000 $7,111.11 Infinity S50,000 $25,000 Infinity S30,000 Salvage value a) Using the incremental cost analysis, calculate the incremental rate of return for switching from project A to B b) Assuming MARR Is 10% per year, what would be your final decision? c) If the DN exist, do your decision change? Why

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