Question: The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives. The MARR is

The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives. The MARR is 8%.

Data

P

Q

R

Initial cost

$5000

$1000

$2500

Benefits per year

$650

0

$350

Salvage value

$5000

$1760

$2500

Life

20 years

5 years

10 years

The incremental ROR between alternatives “Q” and “R” is?

withouut using excal

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