Bank of America uses a MARR of 30% on alternatives for its own business that are considered risky, that is, the response of the public to the service has not been well established by test marketing. Two alternative software systems and the marketing/delivery and the marketing department. plans have been jointly developed by software engineers and the marketing department. They are for new online banking and loan services to passenger cruise ships and military vessels at sea in try nationally. For each system, start-up, annual net income, and salvage value (i.e., sell-out value to another financial corporation) estimates are summarized below.
(a) Perform the incremental ROR analysis by computer.
(b) Develop the PW vs. I graphs for each alternative and the increment. Which alternative, if either one, should be selected.?

	System A	System B
The initial investment, $1000	-12,000	-18,000
Estimated net income, $ 1000 per year	5,000	7,000
Salvage value, $1000	2,500	3,000
Estimated competitive life, years	8	8

Answer rating: 100% (QA)

a System A System B The initial investment 1000 12000 1... View the full answer