Rate of Return Analysis 8.21 Polytec Chemical, Inc. must decide between two additives to improve the dry weather stability of its low-cost acrylic paint. Additive A will have an equipment and installation cost of $125,000 and an annual cost of $55,000. Additive B will have an installation cost of $175,000 and an annual cost of $35,000. If the company uses a 5-year recovery period for paint products and a MARR of 20% per year, which process is favored on the basis of an incremental rate of return analysis