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A firm is deciding which alternative is the best for them to refurbish their production line. Details of the alternatives is as below: Item Installation
A firm is deciding which alternative is the best for them to refurbish their production line. Details of the alternatives is as below: Item Installation Scrap value Net yearly receipts Lifetime A RM10,000 3,000 RM1,625 10 tahun Alternative B RM15,000 1,000 RM1,625 20 tahun RM20,000 4,000 RM1,890 20 tahun Assume repeatability for Alternative A. Help the firm to choose the best alternative using Internal Rate of Return (IRR) Method. (Hint: calculate IRR for individual alternative and also for the changes from one alternative to the other)
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