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Crane Corporation is considering two alternative investments in excavating equipment. Investment A requires an initial investment of $ 1 8 0 , 7 0 0

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Crane Corporation is considering two alternative investments in excavating equipment. Investment A requires an initial investment of $180,700, has positive cash flows of $27,000 per year, and has an estimated salvage value of $21,100. Investment B requires an initial investment of $233,300, has positive cash flows of $32,100 per year, and has an estimated salvage value of $19,000. Each piece of equipment is expected to have a 12-year useful life. Use Excel or a financial calculator to determine the internal rate of return of each project to decide which is more desirable. (Round answers to 2 decimal places, e.g.9.74%.)
\table[[,Investment A,Investment B,],[Internal rate of return,%,%,]]
is more desirable.
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