Question: Three mutually exclusive processes have projected cash flows as shown below. Based on incremental rate of return analysis, which project should be selected? MARR

Three mutually exclusive processes have projected cash flows as shown below. Based on incremental rate of return analysis, which project should be selected? MARR = 9% Years Process X Process Y Process Z ($375,000) ($629,500) ($845,000) $69,000 $64,000 $95,000 $73,490 $69,180 $101,830 $78,236 $174,678 $109,064 ($286,315) $180,513 $116,724 $88,550 $86,702 $124,833 0 1 2 3 4 5 7 8 6 $94,148 ($289,850) $133,416 $100,061 $100,224 $142,498 ($309.644) $107,600 ($433,815) $112,900 $115,415 $162,270 $119,863 $173,694 $173,018 $127,213 $132,462 $184,383 $143,159 ($165,572) $196,397 $143,159 $151,574 $209,096 $151,800 $161,976 $222,517 $160,917 $172,982 $236,697 9 10 11 12 13 14 15
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