Question
A company is evaluating four pieces of equipment that lower raw material requirements. The equipment chosen will have a useful life of 20 years and
A company is evaluating four pieces of equipment that lower raw material requirements. The equipment chosen will have a useful life of 20 years and the company has a MARR of 15%. Analyze the data and identify the initial and final defender (the machine to be chosen) with their respective values.
| A | B | C | D |
Initial Investment | $10,000 | $18,000 | $25,000 | $30,000 |
Annual savings on materials | $4,000 | $6,000 | $7,500 | $9,000 |
Annual cost of operation | $2,000 | $3,000 | $3,000 | $4,000 |
- IRR(A)=19.426% and IRR(C)=17.254%
- IRR(A)=19.426% and IRR(D)=15.777%
- IRR(A)=19.426% and IRR(C)=15.777%
- IRR(A)=19.426% and IRR(B)=15.777%
- None of the above
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IT Auditing An Adaptive Process
Authors: Robert E. Davis
1st Edition
0557220513, 978-0557220519
