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Uretsan Industry Inc. will choose one of the two systems related to gear manufacturing. Information about the systems is given below. The capital cost of

Uretsan Industry Inc. will choose one of the two systems related to gear manufacturing. Information about the systems is given below. The capital cost of the company is 25%. Calculate the internal rate of return of both systems.

A System /// B System

Annual Revenue = 910.000 /// 745.000 Cost of Purchase = 2.600.000 /// 1.142.000 Annual Operating = Expense 210.000 /// 400.000 Scrap Value = 740,000 /// 500,000 Economic Life = 20 years /// 20 years

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