What is the rate of return on the incremental investment

Reference no: EM131961129

Question: You considering two types of automobiles. Model A costs $18,000 and has a salvage value of $9,000 after 4 years. Model B costs $16,000 and has a salvage value of $6,500 after 4 years. What is the rate of return on the incremental investment? What ranges of MARR do you prefer Model A?

Reference no: EM131961129

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