Improve the dry-weather stability of low-cost acrylic paint

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Reference no: EM132113963

Polytech Checmical, Inc. must decide between two additives to improve the dry-weather stability of its low-cost acrylic paint. Additive A will have an equipment and installation cost of $125,000 and an annual cost of $55,000. Additive B will have an installation cost of $175,000 and an annual cost of $35,000. If the company uses a 8 year recovery period for paint products and a MARR of 20% per year, calculate the incremental rate return.

Reference no: EM132113963

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