Question: What is the IRR of Alternative B$?$

Two mutually exclusive alternatives are being

considered. Both have lives of $10$ years.

Alternative A has a first cost of $$10,000$ and

annual benefits of $$4,500.$ Alternative $B$ costs

$$25,000$ and has annual benefits of $$8,800.$ If

the minimum attractive rate of return is $6\%,$

which alternative should be selected? Solve the

problem by the Internal Rate of Return

Analysis.

QUESTION: What is the IRR for Alternative B$?$