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uestion #4 (15 points) Three mutually exclusive revenue alternatives that have infinite lives are under consideration for increasing productivity of a waste disposal company in

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uestion #4 (15 points) Three mutually exclusive revenue alternatives that have infinite lives are under consideration for increasing productivity of a waste disposal company in Doha. The initial costs and cash flows of each alternative are shown. Assuming the MARR is 14.5% per year, answer the following questions. Initial Cost ($) Annual Cash flow ($ per year) Rate of Return (%) 1) Calculate the Rate of Return of Alternative A. 2) Using the Incremental ROR Analysis, which alternative should be selected? ("Do- Nothing" is not an option) A -7,000 1,000 ? B -9,000 1,400 15.6% -3,000 500 16.7%

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