The incremental cash flow between alternatives Z1 and Z2 (Z2 has the higher initial cost). Use an AW-based rate of return equation to determine the incremental rate of return and which alternative should be selected, if the MARR is 17% per year. Let k = year 1 through 10.
Year
0 1-10
Incremental Cash Flow, $(Z2 - Z1)
-40,000 9000 - 500k