State the incremental rate of return between the 2 types of


A Town must choose btw 2 types of bridges which will forever shorten the time and distance for taxpayers to commute. The citys MARR is 13% and the cost and benefit of each type of bridge is listed in the table below.

State the incremental rate of return between the 2 types of bridges, which one should be selected and why

Bridge type

A in millions

B in millions

First cost

350

515

Annual maintenance cost

15

25

Annual benefit

65

95

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Financial Management: State the incremental rate of return between the 2 types of
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