A dyeing and finishing plant is interested in acquiring a dyeing machine for the production of a new product. Three alternatives are being considered as
summarized below. Which alternative should be recommended if the plant’s
MARR (hurdle rate) is 15% per year using (a) the IRR method and (b) the annual worth method? 

Investment cost Annual cash flows Salvage value Life in years A $20,000 $10,000 B $33,000 $9,500 $4,000 $10,000 3 4 C $45,000 $10,500 $18,000 6