Business, 23.03.2020 18:51 kamber3728

Given the following time events and incremental cash flow, if the MARR is 12% per year, which alternative should be selected on the basis of rate of return? Assume Machine B requires the extra $8,000 initial investment. (You can use Excel).

Year

Incremental Year Cash Flow
$(Machine B-A)

0

-8,000

1 - 4

1,000

5 - 7

2,500

8

6,000

Select neither A nor B and go with DN

The "Incremental ROR" is less than MARR, so select machine B

The "Incremental ROR" is more than MARR, so select machine B

The "Incremental ROR" is less than MARR, so select machine A

Answers: 2

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Given the following time events and incremental cash flow, if the MARR is 12% per year, which altern...

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