Question: The following data have been estimated for two mutually exclusive investment alternatives, A and B. Incremental ROR analysis was perform to select more desirable alternative.
The following data have been estimated for two mutually exclusive investment alternatives, A and B. Incremental ROR analysis was perform to select more desirable alternative. If MARR = 12%, what is the correct equation of calculating Ai"? A Capital Investment Annual Cash Flow Salvage Value Useful life -8000 -3500 0 10 - 13000 -1600 2,000 5 O 0=-5000+1900 (P/A, Ai, 10)-11,000(P/F,A',5)-2000 (P/F, AI, 10) O 0=-5000+1900 (P/A, Ai", 10)-11,000(P/F,Ai", 10)+2000 (P/F, Ai', 10) O 0=-5000+1900 (P/A, Ai", 10)-11,000(P/F,Ai',5)+2000 (P/F, AI', 10) 0=-5000+1900 (P/A, Ai", 5)-11,000(P/F,Ai', 5)-2000 (P/F, Ai, 10)
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