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A firm is considering which of two devices to install to reduce costs. Both devices have useful lives of 5 years and no salvage value.
A firm is considering which of two devices to install to reduce costs. Both devices have useful lives of 5 years and no salvage value. Device A costs $10,000 and can be expected to result in $3,000 savings annually Device B costs $13,500 and will provide cost savings of $3,000 the first year but wi increase $500 annually, making the second-year savings $3.500, the third-year savings $4,000, and so forth What is the IRR for device A? Enter your answer as a percentage (e 9.8 for 0.08 or 8% ) A firm is considering which of two devices to install to reduce costs. Both devices have useful lives of 5 years and no salvage value Device A costs $10,000 and can be expected to resutt in $3,000 savings annuatly. Device B costs $13,500 and wifl provide cost sarvings of $3,000 the first year but will increase $500 annually, making the second-yeat savings $3,500, the third-year savings $4,000, and $0 forth What is the IRR for device 8 ? Enter your answer as a percentage (e g; 8 for 0.08 or 8% )
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