Question
Tamarisk, Inc. Corporation is considering two alternative investments in excavating equipment. Investment A requires an initial investment of $198,720, has positive cash flows of $30,250
Tamarisk, Inc. Corporation is considering two alternative investments in excavating equipment. Investment A requires an initial investment of $198,720, has positive cash flows of $30,250 per year, and has an estimated salvage value of $22,680. Investment B requires an initial investment of $252,720, has positive cash flows of $41,216 per year, and has an estimated salvage value of $20,520. Each piece of equipment is expected to have a 12-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 0 decimal places, e.g., 9%.)
Internal rate of return of Investment A _____%
Internal rate of return of Investment B _____%
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