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The defender in an incremental analysis is the alternative

  • A.with the highest first cost
  • B.with the highest rate of return
  • C.of shortest life
  • D.currently held to be best

Answer: D

Correct answer: currently held to be best

The defender is the incumbent - the alternative that has survived the comparisons made so far. Each further alternative challenges it, and the challenger replaces it only if the increment between them earns the required rate. The terminology comes from replacement analysis, where the defender is the asset already in service.

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