A local company is considering in investing in new, more productive equipment. Data concerning the three best
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A local company is considering in investing in new, more productive equipment. Data concerning the three best alternatives are show below. The useful life of the equipment is 20 years and MARR =7%. What is the incremental return on investment of B-C?
| A | B | C | |
| Initial Investment | $50,000 | $22,000 | $15,000 |
| Annual Net Income | $5,093 | $2,077 | $1,643 |
| Salvage Value | $5,000 | $2,200 | $1,500 |
| IRR | 8.3% | 7.3% | 9.2% |
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