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Which increment should be examined first in incremental rate of return analysis, if MARR = 12.0%? Do-nothing A B C D First cost 0 $8,000
Which increment should be examined first in incremental rate of return analysis, if MARR = 12.0%?
| Do-nothing | A | B | C | D | |
| First cost | 0 | $8,000 | $5,000 | $8,000 | $6,000 |
| Annual benefit | 0 | 1,504 | 1,073 | 1,625 | 956 |
| Life | 10 yrs |
| ROR |
| (A)13.5% | (B)17.0% | (C)15.5% | (D)9.5% |
Choices:
A) A-B
B) A-C
C) B-C
D) B-A
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