Consider four mutually exclusive alternatives, each having an 8-year life: А B C D First Cost $1000 $800 $600 $500 Uniform annual 152 120 97 122 benefit Salvage value 750 500 500 If the minimum attractive rate of return is 12%, which alternative should be selected? Use the incremental analysis method.

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Consider four mutually exclusive alternatives, each having an 8-year life:
А
B
C
D
First Cost
$1000
$800
$600
$500
Uniform annual
152
120
97
122
benefit
Salvage value
750
500
500
If the minimum attractive rate of return is 12%, which alternative should be selected? Use the incremental
analysis method.
Transcribed Image Text:Consider four mutually exclusive alternatives, each having an 8-year life: А B C D First Cost $1000 $800 $600 $500 Uniform annual 152 120 97 122 benefit Salvage value 750 500 500 If the minimum attractive rate of return is 12%, which alternative should be selected? Use the incremental analysis method.
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