A printed circuit board manufacturer will construct a new plant. The potential sites have the following estimates of income and cost. A plant on Site A would cost $30.8 million (mil) to build, produce $31 mil/year in revenues, $22.7 mil/year in expenses, and last 15 years. At Site B construction will cost $34.7 mil with $35.2 mil of revenues per year, $26.4 mil/year in expenses and will also last 15 years. Use the internal rate of return to determine which site should be selected. The MARR is 7% per year.

Which alternative would you choose as a base one? Site A or Site B

Analyze the difference between the base alternative and thesecond-choice alternative.

IRR Option B - Option A = ______%. (Round to one decimalplace.)

Which alternative should be selected? Site A or Site B