State the incremental rate of return

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Reference no: EM132032426

A Town must choose btw 2 types of bridges which will forever shorten the time and distance for taxpayers to commute. The citys MARR is 13% and the cost and benefit of each type of bridge is listed in the table below.

State the incremental rate of return between the 2 types of bridges, which one should be selected and why

Bridge type	A in millions	B in millions
First cost	350	515
Annual maintenance cost	15	25
Annual benefit	65	95

Reference no: EM132032426

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