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Please show steps in the calculation for the question parts. 3.2 Two locations of Hare Salads Restaurants are evaluated, with the projected life of each
Please show steps in the calculation for the question parts.
3.2 Two locations of Hare Salads Restaurants are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows Alternative First Cost Maintenance & Operating Costs Annual Benefits Salvage Value 205,000 46,000 5,000 41,000 $ 80,000$ S 10 10 The company uses a MARR of 10%. Using rate of retum analysis, which altemative should be selected? a) List the table of Incremental Cash Flow based on the two alternatives. [2.5 points] b) Calculate the Incremental IRR for system investment. [3.5 points] 3.2 Two locations of Hare Salads Restaurants are evaluated, with the projected life of each facility being 10 years. The cash flows are as follows Alternative First Cost Maintenance & Operating Costs Annual Benefits Salvage Value 205,000 46,000 5,000 41,000 $ 80,000$ S 10 10 The company uses a MARR of 10%. Using rate of retum analysis, which altemative should be selected? a) List the table of Incremental Cash Flow based on the two alternatives. [2.5 points] b) Calculate the Incremental IRR for system investment. [3.5 points]Step by Step Solution
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