(cost alternatives), the PW values are negative. Now, the same conclusions are reached using the
following logic:
• If MARR 12.65%, select B since its PW of cost cash flows is smaller (numerically larger).
• If MARR
12.65%, select A since its PW of costs is smaller.
• If MARR is exactly 12.65%, either alternative is equally attractive.
Example 8.4 illustrates incremental ROR evaluation and break even rate of return graphs for
revenue alternatives. More of break even analysis is covered in Chapter 13.