lI Installed cost Net annual revenue Salvage value Useful life Calculated IRR $40,000 $25,000 $20,000 $6,300$5,650$5,300 20 years 14.7% 20 years 22.2% 10 years 23.2% Solution Answer: The most economical alternative is : B. alternative I Because the imputed market value of alternative I is greater than its MARR Formula to calculate Imputed Market Value is : A = I*(A/P,i,N).