Question: 8. If the interest rate is 12% per year compounded monthly, compare the alternatives shown below on the basis of an incremental rate of return

8. If the interest rate is 12% per year compounded monthly,

8. If the interest rate is 12% per year compounded monthly, compare the alternatives shown below on the basis of an incremental rate of return analysis First cost Annual operating cost Monthly income Salvage value Life, years Alternative 1 $22000 $4500 $1600 $3000 4 Alternative 2 $32000 $5500 $2100 $5000 5

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