The incremental cash flow foe alternatives A and B are given

The incremental cash flow foe alternatives A and B are given below. Determine which should be selected using an AW-based rate of return analysis. The MARR is 15% per year and alternative B requires the larger initial investment.

Solution

I have solved using Excel. Please find excel at https://www.dropbox.com/s/nhuohpfiwagjaq8/Question2.xlsx?dl=0

Incremental Cash Flow (B-A)
Year 0	Year 1-8	PV of Year 1-8	Year 9	PV of Year 9	Net
$ -50,000.00	$8,000.00	$        35,898.57	$ 12,000.00	$      3,411.15	$ -10,690.28
				.
Net Cash flow B - Net cash flow A = Negative
So Cash Flow from A is more => Choose Option A