Two mutually exclusive diesel generators are considered for purchase by a power generation company. Information relevant to

Question:

Two mutually exclusive diesel generators are considered for purchase by a power generation company. Information relevant to compare the alternatives is summarized below:

Use the IRR method to determine the better machine to be purchased. The MARR is 10% per year.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...