Consider two mutually exclusive alternatives stated in year

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Using ATCF in actual 5, computer the incremental rate of return and determine which alternative is preferable Incremental IRR (A - B) = - 1.47% and Alt. B is preferable. Incremental IRR (B - A) = 7.23% and Alt. B is preferable. Incremental IRR (A - B) = 5.61% and Alt. A is preferable. Incremental IRR (A - B) = - 1.47% and Alt. A is preferable. Consider two mutually exclusive alternatives stated in year - 0 dollars. Both alternatives have a three - year life with no salvage value. Assume the inflation rate is 1.59 %, an income tax rate of 39 %, and straight - line depreciation. The MARR is 10%.

Reference no: EM13156353

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