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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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