Question
A local company is considering in investing in new, more productive equipment. Data concerning the three best alternatives are show below. The useful life of
A local company is considering in investing in new, more productive equipment. Data concerning the three best alternatives are show below. The useful life of the equipment is 20 years and MARR =7%. What is the incremental return on investment of B-C?
| A | B | C | |
| Initial Investment | $50,000 | $22,000 | $15,000 |
| Annual Net Income | $5,093 | $2,077 | $1,643 |
| Salvage Value | $5,000 | $2,200 | $1,500 |
| IRR | 8.3% | 7.3% | 9.2% |
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Solution A C IRR 830 730 920 Going by IRR all projects earn ...
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
