For the two alternatives, demonstrate that the sum of the incremental cash flow series (Z − X) over the LCM is equal to the difference in the sums of the individual cash flow series for X and Z. System X Z First cost, $ −40,000 −95,000 AOC, $ per year −12,000 −5,000 Salvage value, $ 6,000 14,000 Life, years 3 6

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For the two alternatives, demonstrate that the sum
of the incremental cash flow series (Z − X) over
the LCM is equal to the difference in the sums of
the individual cash flow series for X and Z.
System X Z
First cost, $ −40,000 −95,000
AOC, $ per year −12,000 −5,000
Salvage value, $ 6,000 14,000
Life, years 3 6

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