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Initial Cost, $ Annual Cost, $/year Salvage value, $ Life, years Type Fe -100,000 -92,000 30,000 10 Type Al -280,000 -74,000 70,000 10 th MARR

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Initial Cost, $ Annual Cost, $/year Salvage value, $ Life, years Type Fe -100,000 -92,000 30,000 10 Type Al -280,000 -74,000 70,000 10 th MARR is 12% per year. Solve for the AW-based incremental rate of return. Base on the resulting interest rate, which type should be chosen

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