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Determine which should be selected using an aw-based rate

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Reference no: EM13882011

The incremental cash flows for two alternative electrode setups are shown. The MARR is 12% per year, and alternative Dryloc requires a larger initial investment compared to NPT. (a) Determine which should be selected using an AW-based rate of return analysis. (b) Use a graph of incremental values to determine the largest MARR value that will justify the NPT alternative.

Year

Incremental Cash Flow
(Dryloc   NPT), $

0

-56,000

18

+8,900

9

+12,000

Reference no: EM13882011

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