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The Chem-Tex Chemical company is considering two additives for improving the dryweather stability of its low-cost acrylic paint. Additive A will have a first cost
The Chem-Tex Chemical company is considering two additives for improving the dryweather stability of its low-cost acrylic paint. Additive A will have a first cost of $140,000 and an annual operating cost of $60,000. Additive B will have a first cost of $185,000 and an annual operating cost of $45,000. If the company uses a 4 -year recovery period for paint products and a MARR of 15% per year, what is the incremental rate of return and which process should be selected? None of the above Incremental ROR=12.6%; Select A Incremental ROR=7.7%; Select A Incremental ROR=7.7%; Select B Incremental ROR=12.6%; Select B
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