8. 6.26 The tabulation of the incremental cash flows between alternatives A and B is shown. Alternative A has a 3-year life and alternative B a 6-

year life. If neither alternative has a salvage value, what is the

(a) first cost of alternative A and

(b) first cost of alternative B?

Table Summary: Table divided into 2 columns summarizes incremental cash flow for a period of six years. The column headers are marked as: Year; and Incremental Cash Flow, B - A, in dollars.

Year Incremental Cash Flow (B − A), $

0 −20,000 1 5,000 2 5,000 3 12,000 4 5,000 5 5,000 6 5,000