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accounting/economics help Two investment opportunities are as follows: At the end of 10 years, Alt. B is not replaced. And terminal value of Alt. A
accounting/economics help
Two investment opportunities are as follows:
At the end of 10 years, Alt. B is not replaced. And terminal value of Alt. A is 40. If the MARR is 10%, which alternative should be selected? What is the IRR of the selected alternative?
a) A, IRR(A)= 12.6%* Chegg answer is 11.46%
b) A, IRR(A)= 14.8%
c) B, IRR(A)= 13.8%
d) B, IRR(B)= 18.0%
A B First cost $150 100 Uniform annual benefit 25 22.25 End-of-useful-life salvage value 20 0 Useful life, in years 15 10Step by Step Solution
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