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The cash flows for three different alternatives are given below. Assume that alt

ID: 1098952 • Letter: T

Question

The cash flows for three different alternatives are given below. Assume that alternatives are replaced at the end of their useful lives.

Data

P

Q

R

Initial Cost

$5,000

$1,000

$2,500

Benefits /Year

$650

0

$ 350

Salvage Value

$5,000

$1,760

$2,500

Life in Years

20

5

10

MARR

                          8%

The incremental ROR between alternatives

Data

P

Q

R

Initial Cost

$5,000

$1,000

$2,500

Benefits /Year

$650

0

$ 350

Salvage Value

$5,000

$1,760

$2,500

Life in Years

20

5

10

MARR

                          8%

Explanation / Answer

14.39%

D.

14.39%

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