The incremental cash flows for two alternative electrode setups are shown. The MARR is 12% per year, and alternative Dryloc requires a larger initial investment compared to NPT. (a) Determine which should be selected using an AW-based rate of return analysis. (b) Use a graph of incremental values to determine the largest MARR value that will justify the NPT alternative.
|
Year
|
Incremental Cash Flow
(Dryloc NPT), $
|
|
0
|
-56,000
|
|
18
|
+8,900
|
|
9
|
+12,000
|