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ven the following time events and incremental cash flow, if the MARR is 16% per year, which alternative should be selected on the basis of

ven the following time events and incremental cash flow, if the MARR is 16% per year, which alternative should be selected on the basis of rate of return? Assume alternative B requires the extra $10,000 initial investment. (You can use Excel).

Year Incremental CFB-CFA
0 -10,000
1 +2,500
2 +2,500
3 +2,500
4 +2,500
5 +5,000

Question 10 options:

The "Incremental ROR" is less than MARR, so select alternative A.

The "Incremental ROR" is more than MARR, so select alternative B.

The "Incremental ROR" is more than MARR, so select alternative A.

Select neither A nor B and go with "DN"

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