3. The cash flows for three different alternatives are given in table below. If MARR is set at 8%, use incremental analysis between (Y and Z), (Y and X) to determine which is the best alternative? Data Alt. X Alt. Y Alt. Z Initial Cost, S Net Benefits/ Year, S 528 Life, Years 12,500 7,500 1,063 9,000 510 25 25 25

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
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3. The cash flows for three different alternatives are given in table below. If
MARR is set at 8%, use incremental analysis between (Y and Z), (Y and X) to
determine which is the best alternative?
Data
Alt. X Alt. Y Alt. Z
Initial Cost, S
Net Benefits/ Year, S 528
Life, Years
12,500 7,500
1,063
25
9,000
510
25
25
Transcribed Image Text:3. The cash flows for three different alternatives are given in table below. If MARR is set at 8%, use incremental analysis between (Y and Z), (Y and X) to determine which is the best alternative? Data Alt. X Alt. Y Alt. Z Initial Cost, S Net Benefits/ Year, S 528 Life, Years 12,500 7,500 1,063 25 9,000 510 25 25
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