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2. Which of the alternatives should be selected on the basis of Incremental Rate of Return analysis where MARR is 6% per semiannual compounded quarterly?
2. Which of the alternatives should be selected on the basis of Incremental Rate of Return analysis where MARR is 6% per semiannual compounded quarterly? The estimated cash flows for each alternative are as follows: (25 pts.) Initial Investment Annual Cost (per year) Salvage Value Useful Life Alternative 1 $20,000 $10,000 $9,000 Alternative 2 $18,000 $9,000 $7,000 Alternative 3 $8,000 $4,000 $3,000 9 years 18 years 18 years
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