An investor has two alternatives A and B$.$ Also, the other opportunities exist at a $15\%$ minimum rate return. The total money available for investment

is $160,000$ and the cash flow for alternatives A and $B$ are displayed in the following tables:

Project A: Includes investment of $50,000$ dollars at the present time which yields an income of $20,000$ dollars for $6$ years and the salvage value at the

end of the sixth year is $50,000$ dollars.

Project B: Includes investment of $160,000$ dollars at the present time which yields an income of $60,000$ dollars for $6$ years and the salvage value at the

end of the sixth year is $160,000$ dollars.

C: Cost, I: Income, L: Salvage

Fill in the blanks below using ROR and NPV analysis, and decide which investment is economically better. Please include the incremental analysis and

show all your work in the blank after.

NPV of Project A $($round to nearest one$)$

NPV of Project B $($round to nearest one$)$

NPV of Incremental Project $($B$-$A$)($round to nearest one$)$

ROR of Project A in percentage $($round to $1$ decimal place$)$

ROR of Project B in percentage $($round to $1$ decimal place$)$

$\%$

ROR of Incremental Project $($B$-$A$)$ in percentage $($round to $1$ decimal place$)$

Which project should the investor choose $($A$/$B$)$