The cash flows for three different alternatives are given below. Assume that alt
ID: 1092025 • Letter: T
Question
The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives.
Data
P
Q
R
Initial Cost
$5,000
$1,000
$2,500
Benefits /Year
$650
0
$ 350
Salvage Value
$5,000
$1,760
$2,500
Life in Years
20
5
10
MARR
8%
The incremental ROR between alternatives
Data
P
Q
R
Initial Cost
$5,000
$1,000
$2,500
Benefits /Year
$650
0
$ 350
Salvage Value
$5,000
$1,760
$2,500
Life in Years
20
5
10
MARR
8%
Explanation / Answer
A.
14.39%