Please Answer the questions for the boxes in detail

Two alternatives are being considered: B 5000 9200 1750 1850 First cost Uniform annual benefit Useful life, in years 4 8 If the minimum attractive rate of return is 7%, which alternative should be selected? Solution: 1. Use the increment analysis, we should use > 2. Terms n= 3. The Increment CFD has 3 basic patterns: O AP= = F= occurred at end of year 4. AROR= % 5. Choose