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please show me how to answer in clear way Q3 Your company is considering two diff ons for some factory equipment. Option B pti Amount
please show me how to answer in clear way
Q3 Your company is considering two diff ons for some factory equipment. Option B pti Amount First Costul savings Option A $15,000/yr. + $125,000 75,000 Increment S55,000/yr. The useful lives of both options are 10 valid option. ars and the equipment has O salvage value. Do nothing is a What is the approximate internal rate of return (R terest rate from the tablesernal rate of return (IRR) of Option A? (Find the nearest b. What is the approximate internal rate of return of Option B? (Find the nearest interest rate from the tables-no need to interpolate.) Using incremental rate of return analysis, find 1RR (Find the nearest interest rate from the tables - no need to interpolate.) c. IfMARR 10%, whalt is the better option? dStep by Step Solution
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