MECH 402 Engineering Economics The cash flows for three mutually exclusive alternatives are given in table below. MARR-4%. cost Annual benefits $4,500 7,600 RoR IF Problem 1 ARoR for the first increment (Alt, C-Alt. A) is A. 3.36% B. 3.09% C. 2.85% D. 3.62% Solution: Problem 2 Determine the ARoR for the second increment (Alt. B-AltA) if A was retained during the first A. 10.85% incremental analysis. B. 8.12% -CA19% D. 5.78% Problem 3 The best alternative for a MARR of 2.0% using the incremental rate of return analysis is A. Alt. C B. Alt. A C.Alt. B D. Do-nothing F9