Refer to Example 6-7 and develop the incremental cash ows of Alternative B minus Alternative A, (B-A),overa12-yearstudyperiod.Domultipleinterest rates exist for (B-A) cash ows? (6.2, Appendix 5A)

Problem Refer to Example 6-7 and develop the incremental cash flows of Alternative B minus Alternative A, A (B-A), over a 12-year study period. Do multiple interest rates exist for A(B-A) cash flows? EXAMPLE 6-7 The following data have been estimated for two mutually exclusive investment alternatives, A and B, associated with a small engineering project for which revenues as well as expenses are involved. They have useful lives of four and six years, respectively. If MARR*10% per year, show which alternative is more desirable by using equivalent-worth methods (Computed by hand and by spreadsheet). Use the repeatability assumption. A $3.500 $5,000 Capital investment 1,255 1.480 Annual cash flow Useful life (years) Market value at end of useful life 0 Step-by-step solution