Question: USING THE incremental rate of return analysis Consider the following two mutually exclusive alternatives (do not consider the Do Nothing alternative). Each alternative has a

USING THE incremental rate of return analysis

Consider the following two mutually exclusive alternatives (do not consider the Do Nothing alternative). Each alternative has a 10-year useful life and no salvage value. If the MARR is 10%, which alternative should be selected? Answer in terms of incremental rate of return analysis

Cash Flow	A	B	B-A
Initial cost	(-$6000)	(-$9,000)	(-$3,000)
EUAB	$1000	$1,500	$500

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