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by incremental cash flow, which alternative should * be selected Year X Y 0 -$5,000 $5,000 1 $3,000 +$2,000 2 +$4,000 +$2,000 3 +$4,000 +$2,000 4 +$4,000 +$2,000 XO any one they are equal) Year A 0 $2.500 $6.000 1-5 $746 51.664 Compute the rate of return on the increment of intent and compare to MARR and 101 10% 8% 9.8% 9% =the incremental cash flow Year X Y 0 $5,000 $5,000 1 -$3,000 +$2,000 2 +$4,000 +$2,000 3 +$4,000 +$2,000 4 +$4,000 +$2,000 1700 1000 2000 -1200 -5000 5000 none of above o when you compute the rate of return on the increment of investment and compare to 8% MARR. and if you try i=8%, and i=10%, the best alternative is : B Year A -$2,500 -$6,000 1-5 +$746 +$1,664 A-B - by incremental cash flow, which alternative should * be selected Year X Y 0 -$5,000 $5,000 1 $3,000 +$2,000 2 +$4,000 +$2,000 3 +$4,000 +$2,000 4 +$4,000 +$2,000 XO any one they are equal) Year A 0 $2.500 $6.000 1-5 $746 51.664 Compute the rate of return on the increment of intent and compare to MARR and 101 10% 8% 9.8% 9% =the incremental cash flow Year X Y 0 $5,000 $5,000 1 -$3,000 +$2,000 2 +$4,000 +$2,000 3 +$4,000 +$2,000 4 +$4,000 +$2,000 1700 1000 2000 -1200 -5000 5000 none of above o when you compute the rate of return on the increment of investment and compare to 8% MARR. and if you try i=8%, and i=10%, the best alternative is : B Year A -$2,500 -$6,000 1-5 +$746 +$1,664 A-B

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