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For machines U and V, details are provided. What will be the Delta IRR and which machine should be selected? Machine U Machine V Initial
For machines U and V, details are provided. What will be the Delta IRR and which machine should be selected? Machine U Machine V Initial cost $320,000 $410,000 Life in years 5 6 Inflation (for costs and benefits) 2% P. y. MARR 7% P. y. C. y. Project life 12 years Salvage value of machine today $44,800 $57,400 Machine market value with 2 years of use $153,600 First year estimated costs $39,500 $53,800 First year estimated benefits $113,900 $128,435 O 3.83%, go with Machine U O 8.42%, go with Machine U O 9.69%, go with either Machine U or V O 11.61%, go with Machine V
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