The cash flows for three different alternatives are given in table below. MARR =10%. Based on incremental rate of return analysis, what is the best alternative?

Show your work on your worksheet. Type in your answers to the nearest whole% (1.59% would be typed in as 2%)

	Alt. A	Alt. B	Alt. C
Initial cost	$5,000	9,000	7,500
Annual benefits	$1,457	2,518	2,133
Salvage	$250	$1,240	$1,450
RoR	15%	20%	18%
Life in years	5

What is the incremental rate of return for the first challenger - defender evaluation:

What is the incremental rate of return for the second challenger - defender evaluation:

What is the best alternative for this analysis; Do- Nothing, A, B, or C