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Hector is considering two types of compressors for his company compressor A has a cost of $100,000 and has operation and maintenance costs of $30,000
Hector is considering two types of compressors for his company compressor "A" has a cost of $100,000 and has operation and maintenance costs of $30,000 per year. The second alternative "B" has a cost of $80,000 with yearly operation and maintenance costs of $35,000 per year if considers a time horizon of 10 years for both alternatives and a MARR more of 25%. Determine the following: a. The IRR for each alternative b. The IRR for each alternative considering a salvage value of 15% of their original cost. c. Determine which if any alternative should be selected. If needed perform an incremental analysis
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