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Four manufacturing plant options are up for consideration by a company: Plant A; Plant B; Plant C; and Pant D. The cash flow data is
Four manufacturing plant options are up for consideration by a company: Plant A; Plant B; Plant C; and Pant D. The cash flow data is given in below, comprising of disbursements and receipts. The plants all have the same service life of 6 years. The company has set a minimum attractive rate of return (MARR) of 6.5%. EQUIPMENT INITIAL COST ANNUAL INCOME ANNUAL OPERATION & MAINTENANCE COSTS SALVAGE VALUE A B $24,500 $61,000 $38,000 $33,300 $6,600 $13,300 $11,100 $8,500 $775 $1,050 $1000 $990 $3,900 $5,700 $4,800 $2,300 D a. Compute the individual IRR of all alternatives. b. Use the Incremental IRR method to select the best alternative for this company. NB: Please show detailed calculations for each alternative. Ensure to state the choice and accompanying reason at the end of the
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