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Ivanhoe Corporation is considering two alternative investments in excavating equipment. Investment Arequires an initial investment of $181,200, has positive cash flows of $27,000 per year,
Ivanhoe Corporation is considering two alternative investments in excavating equipment. Investment Arequires an initial investment of $181,200, has positive cash flows of $27,000 per year, and has an estimated salvage value of $21,100. Investment B requires an initial investment of $230,200, has positive cash flows of $33,100 per year, and has an estimated salvage value of $19,300. Each piece of equipment is expected to have a 13-year useful life. Use a financial calculator to determine the internal rate of return of each project to decide which is more desirable. (Round answers to 2 decimal places, e.g. 9.74%.) Investment A Investment B Internal rate of return % % v is more desirable
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