Question: A company has decided to buy a new machine. Two alternatives, A and B, are considered with the following data. Find the incremental rate

A company has decided to buy a new machine. Two alternatives, A

A company has decided to buy a new machine. Two alternatives, A and B, are considered with the following data. Find the incremental rate of return between A and B. Cost new Annual O&M Cost Salvage value Annual income Estimated life (yr) A $850,000 $50,000/yr $180,000 $230,000/yr 10 B $980,000 $45,000/yr $300,000 $240,000/yr 10

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