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1. Which of the alternatives should be selected on the basis of Incremental Rate of Return analysis where MARR is 4% per quarter compounded semiannual?
1. Which of the alternatives should be selected on the basis of Incremental Rate of Return analysis where MARR is 4% per quarter compounded semiannual? The estimated cash flows for each alternative are as follows: Alternative Alternative Alternative 2 Initial Investment $20,000 $18,000 $8,000 Annual Cost (per year) $5,000 $4,000 $3,000 Salvage Value $8,000 $6,000 $2,000 Useful Life 10 years 10 years 5 years 1 3
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