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Q4- MARR is 12%. On the basis of IRR criterion, which option is better? please show all steps and all work, thank you Alternative 1
Q4- MARR is 12%. On the basis of IRR criterion, which option is better? please show all steps and all work, thank you
Alternative | 1 | 2 | 3 | 4 |
First cost, $ | -80,000 | -50,000 | -145,000 | -20,000 |
Annual Cost | -28,000 | -26,000 | -16,000 | -21,000 |
Annual revenue | 61,000 | 43,000 | 51,000 | 29,000 |
Life, years | 4 | 4 | 8 | 4 |
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