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For two mutually exclusive machines, which machine will you select if the MARR is 10%? Machine A: Cash flows for Years 0 to 7: (-$2000),
For two mutually exclusive machines, which machine will you select if the MARR is 10%?
Machine A: Cash flows for Years 0 to 7: (-$2000), $500, $500, (-$1000), (-$1000), (-$3500), $4000 and $12000.
Machine C: Cash flows for Years 0 to 7: (-$6000), $4000, $0, (-$500), (-$1800), (-$3500), $4000 and $15000.
| Machine A | ||
| Machine C | ||
| Both need to be rejected. | ||
| Both are equally good. |
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