Which alternatives can be eliminated immediately in the first step of incremental rate of return analysis, if MARR = 12.0%? 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 $5,500 $3,500 $7,000 $3,500
Annual benefit 0 1,054 765 1,448 545
Life 10 yrs
ROR 14.0% 17.5% 16.0% 9.0%
Life 10 yrs
ROR 13.0% 17.0% 16.0% 10.5%
The answer choices are:.
B-A
A-B
B-C
A-C