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There are two machines (mutually exclusive) can be purchased. Both machine have10 years life.MARR of 10%per year. Solve for the incremental rate of returnfor the

There are two machines (mutually exclusive) can be purchased. Both machine have10 years life.MARR of 10%per year. Solve for the incremental rate of returnfor the comparison of the two machines.Provide your step-by-step solution for the incremental rate of return analysis (including the calculation of the incremental rate of return).

year machine1 machine2
year0 -80,000
year1-5 M&O cost -35,000
year5 --
year6-10 M&O cost -35,000
year10 --
life in years 10 10

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