Question: 6. (10 pts) Use incremental analysis to evaluate the 2 alternatives. Assume an eight year life and a MARR of 10%. Would picking the investment

6. (10 pts) Use incremental analysis to evaluate the 2 alternatives. Assume an eight year life and a MARR of 10%. Would picking the investment with highest IRR give you the best investment decision? (Chapter 7) Alt A Alt B Initial Investment O&M Costs Annual Benefit Salvage Value IRR $10,000 $1,250 $3,000 $3,000 11.8% $6,800 $600 $2,000 12.6%

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