Given the financial data for four mutually exclusive alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =10%.
A B C D
First cost $15,000 $36,000 $21,200 45,000
O &M Cost/ year 1,600 400 900 1,000
Benefit/year 8,000 13,000 9,000 15,000
Salvage value 3,000 6,000 4,600 10,000
Life in years 4 for all alternatives
A) Alternative A
B) Alternative B
C) Alternative C
d) Alternative D