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3.2Two hazardous environment facilities are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows First Cost Maintenance

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3.2Two hazardous environment facilities are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows First Cost Maintenance & Operating Costs Annual Benefits Salvage Value Project life Alternative A $615,000 $10,000 $158,000 $65,000 10 Alternative B $300,000 $25,000 $92,000 -$5,000 The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected? a) List the table of Incremental Cash Flow based on the two alternatives [2 points] b) Calculate the Incremental IRR for the system investment [3 points] c) Which alternative should be chosen? Why? [1 points 1 point]

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