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Considering a MARR of 12%, Assembly A Assembly B Assembly C First cost, $ ($175,000) ($160,000) ($145,000) Annual cost, $/year ($25,000) ($19,000) ($12,000) Salvage Value,
Considering a MARR of 12%, Assembly A Assembly B Assembly C First cost, $ ($175,000) ($160,000) ($145,000) Annual cost, $/year ($25,000) ($19,000) ($12,000) Salvage Value, $ $9,000 $10,000 $12,000 Annual Savings, $/year $95,000 $85,000 $75,000 Life, years 8 8 8 a) What is the incremental IRR between Assembly Method B and C? b) What is the next incremental IRR that is calculated? c) Which assembly method would you select based upon the rate of return analysis
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