Question: using ROR incremental Exercise 8: Incremental ROR Analysis of Multiple Alternatives Caterpillar Corporation wants to build a spare part storage facility in the Phoenix, Arizona,
Exercise 8: Incremental ROR Analysis of Multiple Alternatives Caterpillar Corporation wants to build a spare part storage facility in the Phoenix, Arizona, and vicinity. A plant engineer has identified four different location options. The initial cost of earthwork and prefab building and the annual net cash flow estimates are detailed in Table. The annual net cash fl ow series vary due to differences in maintenance, labor costs, transportation charges, etc. If the MARR is 10%, use incremental ROR analysis to select the one economically best location
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