Either of the cost alternatives shown below can be used in a chemical refining process. If the company’s MARR is 15% per year, determine which should be selected on the basis of an incremental ROR analysis.
First cost ,$
Annual cost, $/year
Salvage value, $
Life, years 5
– A. B. C. D. E. F.
The incremental rate of return computed using a present worth analysis is nearest to is the incremental rate of return to be found – A. B. C. D. E. F.
Which alternative is to be chosen? A.
Alternative A D.