(Solved):The incremental cash flow between alternatives J and K is estimated below. If the MARR is 20% per…

 

Question

The incremental cash flow between alternatives J and K is estimated below. If the MARR is 20% per year, which alternative should be selected on the basis of rate of return? Assume K requires the extra $90,000 initial investment.

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Year Incremental Cash Flow, $ (K-J)
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