Two mutually exclusive cost alternatives, Machine A and Machine B, are being evaluated.

Given the following time events and incremental cash flow, if the MARR is 12% per year, which alternative (Machine A or Machine B) should be selected on the basis of the incremental rate of return analysis? Assume Machine B requires the extra $10,000 initial investment. (You can use Excel).

Year	Incremental Cash Flow ($) (Machine B - Machine A)
0	-10,000
1 - 4	1,300
5 - 7	3,200
8	4,500

Question options:

	The "Incremental ROR" is more than MARR so select, Machine A
	The "Incremental ROR" is more than MARR, so select Machine B
	Select neither A nor B and go with DN
	The "Incremental ROR" is less than MARR, so select Machine A