A firm is considering the purchase of a new machine to increase the productivity of existing production process. All the alternatives have a life of 10 years and they have negligible market value after 10 years. Use the IRR method (incrementally) to make your recommendation. The firms MARR is 10% per year.

(10 marks) A firm is considering the purchase of a new machine to increase the productivity of existing production process. All the alternatives have a life of 10 years and they have negligible market value after 10 years. Use the IRR method (incrementally) to make your recommendation. The firm's MARR is 10% per year. Alternative Capital Investment Annual Operating Cost $100,000 $20,000 $110,000 $18,500 $125,000 $17,000 $130.000 $15,500 $150,000 $10,000