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Given the Financial Data for Four Mutually Exclusive Alternatives in the Table

Question 2

Multiple Choice

Given the financial data for four mutually exclusive alternatives in the table below, determine the best alternative using the incremental rate of return (?RoR) analysis. MARR =10%.
 A  B  C  D  First cost $15,000$36,000$21,20045,000 O &M Cost/year 1,6004009001,000 Benefit/year 8,00013,0009,00015,000 Salvage value 3,0006,0004,60010,000 Life in years 4\begin{array} { | l | l | l | l | l | } \hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { First cost } & \$ 15,000 & \$ 36,000 & \$ 21,200 & 45,000 \\\hline \text { O \&M Cost/year } & 1,600 & 400 & 900 & 1,000 \\\hline \text { Benefit/year } & 8,000 & 13,000 & 9,000 & 15,000 \\\hline \text { Salvage value } & 3,000 & 6,000 & 4,600 & 10,000 \\\hline \text { Life in years } &&& { 4 } \\\hline\end{array}


A) Alt. A
B) Alt. B
C) Alt. C
D) Alt. D

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