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The Cash Flows for Four Mutually Exclusive Alternatives Are Provided

Question 8

Multiple Choice

The cash flows for four mutually exclusive alternatives are provided in the table below.
If the useful life is 10 years for each alternative, find the best alternative using incremental rate of return analysis. MARR = 10%
 P  Q R S Iritial Cost 19,00016,00011,0008,500 EUAB 3,5003,1002,2001,350\begin{array} { | l | l | l | l | l | } \hline & \text { P } & \text { Q } & R & \mathrm {~S} \\\hline \text { Iritial Cost } & 19,000 & 16,000 & 11,000 & 8,500 \\\hline \text { EUAB } & 3,500 & 3,100 & 2,200 & 1,350 \\\hline\end{array}


A) Alt. P
B) Alt. Q
C) Alt. R
D) Alt. S

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