40 Calculate the ROR for the incremental net cash flow (X - Y), given the data below. Note that the appropriate increment is (X - Y), not (Y - X), because the initial cost of X exceeds the initial cost of Y. Alternative X Y Initial cost ($) 30 Uniform annual benefit 12 10 ($k) Life (years) 8 8 Salvage value EOY 8 0 0 ROR (%) 24.95 28.98 Which of the selections below is correct? ROR = 28.98% - 24.95% = 4.03% ROR = 11.81%, the interest rate that is the solution to: NPW = 0 = -10 + 2 (P/A,i%,8) ROR = 24.95% = ROR of X, because X is more costly ROR = 36.721%, the interest rate that is the solution to: NPW = 0 = -30 + 12 (P/A,i%,8)