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Two options for a required project have been given to you. The cost of Option 1 is less than the cost of Option 2 .

Two options for a required project have been given to you. The cost of Option 1 is less than the cost of Option 2 . Incremental analysis yields an incremental rate of return of 4% between the two. If both alternatives have the same useful life and the MARR is 5%, which option should be chosen? We need to know the opportunity cost for the extra cost of Option 2 Option 2 Option 1 

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