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5. Internal Rate of Return Consider the following alternatives and a MARR of 6% Alternative A: Construction Costs of $120 and benefit of $80
5. Internal Rate of Return Consider the following alternatives and a MARR of 6% Alternative A: Construction Costs of $120 and benefit of $80 in years 1 and 2 Alternative B: Construction costs of $105 and benefit of $110 in year 1 Alternative C: Construction costs of $125 and benefit of $180 in year 2 a) Calculate the IRR of each alternative b) Which alternative would you select on the basis of the rate of return on incremental investments?
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