Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower. Two machines are being considered, the Atlas and the Zippy.
|Annual operating and maintenance cost, $Per year||-8,600||-2,000|
|Annual income,$Per year||33,000||58,000|
a. Construct the Incremental Cash Flow Diagram
b. Determine the Incremental cash flow equation for Future Worth.
c. Calculate the incremental rate of return