Question
For two mutually exclusive machines, which machine will you select if the MARR is 10% based on the concept of IRR or B/C ratio? Machine
For two mutually exclusive machines, which machine will you select if the MARR is 10% based on the concept of IRR or B/C ratio?
Machine A: Cash flows for Years 0 to 6: (-$2000), $500, $500, (-$1000), (-$1000), $3500 and $4000.
Machine B: Cash flows for Years 0 to 6: (-$3000), $0, $1000, (-$500), $1800, (-$3500) and $9000.
| Machine A | ||
| Machine B | ||
| Both need to be rejected. | ||
| Both are equally good. |
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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
