Question: Which alternative should be selected using incremental rate of return analysis, if MARR - 11.0%? First cost Do-nothing A B | D 0 $10,000 $7,000
Which alternative should be selected using incremental rate of return analysis, if MARR - 11.0%? First cost Do-nothing A B | D 0 $10,000 $7,000 $10,000 $5,000 O 1.843 1.475 2,069 745 Annual benefit Life 10 yrs ROR 13.0% 16.5% 16.0% 8.0% o C because C has the highest annual benefit something other than C, because C costs the most initially O B. because its ROR is the highest O C, because the C-B increment has a ROR of 14.82% and the A-B increment has a ROR of 3.87%
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