Determine the incremental rate of return between alternative

Reference no: EM13318203

The incremental cash flow between alternatives Z1 and Z2 (Z2 has the higher initial cost). Use an AW-based rate of return equation to determine the incremental rate of return and which alternative should be selected, if the MARR is 17% per year. Let k = year 1 through 10.

Year

0 1-10

Incremental Cash Flow, $(Z2 - Z1)

-40,000 9000 - 500k

Reference no: EM13318203

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