Two projects are being considered and are mutually exclusive. Both have lives of 5 years. Project A has a first cost of
Posted: Thu May 19, 2022 2:25 pm
Two projects are being considered and are mutually exclusive.
Both have lives of 5 years. Project A has a first cost of $2,500
and annual benefits of $746. Project B has a first cost of
$5,000 and annual benefits of $1464. Assume the MAR is 8.000% and
use an incremental RoR analysis.
What should be selected?
What is the incremental rate of return between the projects (to 3
decimal places like 8.145% or 12.671%)?
Both have lives of 5 years. Project A has a first cost of $2,500
and annual benefits of $746. Project B has a first cost of
$5,000 and annual benefits of $1464. Assume the MAR is 8.000% and
use an incremental RoR analysis.
What should be selected?
What is the incremental rate of return between the projects (to 3
decimal places like 8.145% or 12.671%)?