A company is considering 2 investment proposals: A and B. The cash flow data for the investments over a 10-year planning horizon are given below. Write a step-by-step procedure to determine which alternative should be chosen based on the ERR approach, given

both investments are attractive for a MARR rate of 15%. (You do not need to solve for ERR values, just write the appropriate equation(s) using TVOM factors.)

B Initial investment Salvage value Annual receipts Annual disbursements $350,000 $50,000 $140,000 $70,000 $300,000 $40,000 $120,000 $60,000