Question: Given the following 4 alternatives, the best alternative using the incremental IRR analysis is: Dealer 1 2 3 4 First Cost, $ -5,000 -6,500 -10,000

Given the following 4 alternatives, the best alternative using the incremental IRR analysis is:

Dealer 1 2 3 4
First Cost, $ -5,000 -6,500 -10,000 -15,000
Annual Average Cost per repair, $ -3500 -3200 -3000 -2700
Close-out value, $ +500 +900 +700 +1000
Life, years 8 8 8 8

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