Machine-translated by Google. Questions are authored in English.
Top

Discussion

For incremental analysis the alternatives must first be ordered by

  • A.decreasing project life
  • B.increasing first cost
  • C.decreasing first cost
  • D.increasing rate of return

Answer: B

Correct answer: increasing first cost

The analysis proceeds by asking, of each additional increment of investment, whether that increment itself earns the required rate. That question only makes sense working upward from the cheapest alternative, so the ordering is by increasing first cost and the do-nothing option is the starting defender.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.