Question: Given the financial data for four mutually exclusive alternatives in the table below, determine the best alternative using the incremental rate of return (AROR)

Given the financial data for four mutually exclusive alternatives in the table below, determine the best alternative using the incremental rate of return (AROR) analysis. MARR =10%. A B. First cost $15,000 $21,200 $36,000 45,000 O &M Cost/ 1,600 700 400 1,000 year Benefit/year 8,000 9,000 13,000 15,000 Salvage value 3,000 4,600 6,000 10,000 Life in years 5.

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Arranging alternatives in increasing order of initial cost A C B D Incremental rate of return RoR analysis for C A Incremental first cost CA 21200 150... View full answer

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