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

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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