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Parking meters are being considered for a certain district. Two types are available with the following estimated costs: The Minimum Attractive Rate of Return is
Parking meters are being considered for a certain district. Two types are available with the following estimated costs: The Minimum Attractive Rate of Return is 10%. If one solution has to be selected, which of the following statements is correct? We should find the incremental cash-flows of Type B minus those of Type A and then estimate the IRR of them, if the IRR is less than the MARR, then we should choose Type B. We should find the incremental cash-flows of Type A minus those of Type B and then estimate the IRR of them. If the IRR is more than the MARR, then we should choose Type A. We should find the incremental cash-flows of Type B minus those of Type A and then estimate the IRR of them. If the IRR is more than the MARR, then we should choose Type B. We should calculate the IRR of each investment separately then we pick the lowest of them
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