The incremental cash flows for two alternative electrode setups are shown. The MARR is 12% per year, and alternative Dryloc requires a larger initial investment compared to NPT.

(a) Determine which should be selected using an AW-based rate of return analysis.

(b) Use a graph of incremental values to determine the largest MARR value that will justify the NPT alternative.

                                    Incremental Cash Flow

Year                                 (Dryloc – NPT), $

0 ................                            –56,000

1–8 ...........                              +8,900

9 ...............                            +12,000