dolution

dolution.

Two options are available for setting up a wireless meter scanner and controller. A simple setup is good for 2 years and has an initial cost of $12,000, no salvage value, and an AOC of $27,000 per year. A more permanent system has a higher first cost of $73,000, but it has an estimated life of 6 years and a salvage value of $15,000. It costs only $12,000 per year to operate and maintain.

If the two options are compared using an incremental rate of return, what is the incremental cash flow in year 6?

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The incremental cash flow in year 6 is $_____

dolution

 
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