A Corporation wants to install an High Volume air$-$conditioning $($HVAC$)$ equipment

for its newly built plant. Three alternatives, all predicted to have a ten year

projected lifetime, are being considered.

Assume that these three alternatives are acceptable performance$-$wise.

If MARR is $15\%,$ and an incremental ERR method is used, which alternative is the

final correct decision? What is the final incremental ERR pairwise value?

Accept challenger, reject new base alternative with incremental ERR $17\mathrm{.}6\%,$ Choose C$.$

Reject challenger, retain new base alternative, with incremental ERR$=3\mathrm{.}51\%,$ Choose $C$

Reject challeger, retain new basic alternative with incremental ERR$=7\mathrm{.}285\%,$ choose $A.$

Reject base alternative, accept challenger, with incremental ERR $=3\mathrm{.}51\%,$ Choose B SHOW SOLUTION