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A manufacturer, whose MARR is 6 % , is considering two alternative plant layouts, A 1 and A 2 . The first cost represent the

A manufacturer, whose MARR is 6%, is considering two alternative plant layouts, A1 and A2.
The first cost represent the expenses of rearranging the current layout to the alternative new layout and the
annual savings represent the reduction in the production costs of the new layout compared to the current layout.
Using the internal rate of return as the decision criterion, what course of action do you recommend?

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