The cash flows for three different alternatives are given below. Assume that alt

Question

1. 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% Reference: Ref 8-1
   The incremental ROR between alternatives

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% Reference: Ref 8-1
The incremental ROR between alternatives 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% Reference: Ref 8-1
The incremental ROR between alternatives Reference: Ref 8-1 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

Explanation / Answer

9.76% B. 9.76%

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