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The cash flows for three different alternatives are given in table below. MARR =10% Alt. A Alt. B Alt C. Initial cost $5000 $9000 $7500

The cash flows for three different alternatives are given in table below. MARR =10%

Alt. A Alt. B Alt C.
Initial cost $5000 $9000 $7500
Annual benefits $1457 $2,518 $2,133
ROR 14% 13% 12.4%
Life in years 5 5 5

?RoR for the first increment (Alt. C-Alt. A) is ___________________. A. 10.12% B. 9.38% C. 11.85% D. 11.00%

The best alternative for a MARR of 10% using the incremental rate of return analysis is ____________. A. Alt. C B. Alt. A C. Alt. B D. Do-nothing

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