Question: EXAMPLE PROBLEM - RATE OF RETURN METHOD, INCREMENTAL ANALYSIS The following six mutually exclusive projects have a life of 10 years. Use the rate

EXAMPLE PROBLEM - RATE OF RETURN METHOD, INCREMENTAL ANALYSIS The following six mutually exclusive projects have a life of 10 years. Use the rate of return method (incremental analysis) to determine the preferred project if the MARR is 12%. Project A B C E F First Cost 3000 4000 7000 9000 10000 13000 N.A.S. 400 1000 1300 1850 2000 2400 Salvage Value 300 500 700 1200 1700 1700 R.O.R. (%) 6.7 21.9 13.9 16.6 16.1 14.0

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How did those affected accept the project result?

Where do we still have potential?

Which threats did we identify during the project and avert well?