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For the following situation: Year Initial Cost Annual Operation and Maintenance cost Annual Benefit Salvage Value Useful Life Alternative A 6,700 1.500 4,000 1,000 3

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For the following situation: Year Initial Cost Annual Operation and Maintenance cost Annual Benefit Salvage Value Useful Life Alternative A 6,700 1.500 4,000 1,000 3 Alternative B 16,900 1.200 4,500 3500 6 If the minimum attractive rate of return is 8%, which alternative should be selected using Incremental Rate of Return Analysis? B-A

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