| Learning Objectives (See related pages)
Why incremental analysis? State why an incremental analysis is necessary for comparing
alternatives by the ROR method. |
| | | Incremental cash flows Prepare a tabulation of incremental cash flows for two
alternatives. |
| | | Interpretation Interpret the meaning of ROR on the incremental initial
investment. |
| | | Incremental ROR by PW Select the better of two alternatives using incremental or
breakeven ROR analysis based on present worth. |
| | | Incremental ROR by AW Select the better of two alternatives using a ROR analysis
based on annual worth. |
| | | Multiple alternatives Select the best of multiple alternatives using an incremental
ROR analysis. |
| | | Spreadsheets Develop spreadsheets that include PW, AW, and ROR
evaluation for multiple, different-life alternatives. |
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