Question: Please Answer the questions for the boxes in detail Two alternatives are being considered: B 5000 9200 1750 1850 First cost Uniform annual benefit Useful

 Please Answer the questions for the boxes in detail Two alternatives Please Answer the questions for the boxes in detail

Two alternatives are being considered: B 5000 9200 1750 1850 First cost Uniform annual benefit Useful life, in years 4 8 If the minimum attractive rate of return is 7%, which alternative should be selected? Solution: 1. Use the increment analysis, we should use > 2. Terms n= 3. The Increment CFD has 3 basic patterns: O AP= = F= occurred at end of year 4. AROR= % 5. Choose

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