Projected life of each facility

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Two facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows for each facility are shown in the table below.

Cash Flow

Alt. A

Alt. B

First Cost

$450,000

$615,000

Annual O & M Cost

$15,000

$10,000

Annual Benefits

$85,000

$158,000

Salvage Value

$45,000

$65,000

What is the incremental ROR for the two alternatives?

Reference no: EM131414316

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