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 value of incremental cash flow for year 3?

	A	B
Capital Investment	-8000	-13000
Annual Cash Flow	-3500	-1600
Salvage Value	0	2,000
Useful life	5	5

Group of answer choices

-$1900

+$1900

-$3,500

-$1,900

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