The incremental ROR is closes to:

A.

15%

B.

20%

C.

>20%

D.

5%

Based on your incremental ROR calculated in the previous problem, which of the following statement is correct.

	A.	Incremental ROR is less than MARR, therefore the higher cost alternative A should be selected.
	B.	Incremental ROR is greater than MARR, therefore the lower cost alternative B should be selected.
	C.	Incremental ROR is less than MARR, therefore the lower cost alternative B should be selected.
	D.	Incremental ROR is greater than MARR, therefore the higher cost alternative A should be selected.

7-66 Two hazardous environment facilities are being A evaluated, with the projected life of each facility being 10 years. The company uses a MARR of 15%. Using rate of return analysis. Alt. A Alt. B First cost O&M cost Annual benefits 158,000 92,000 Salvage value 65,000 -5,000 $615,000 $300,000 0,000 25,000