A company is considering four alternative processing equipment with 15-year useful lives

Finance Dec 24, 2020

A company is considering four alternative processing equipment with 15-year useful lives. See the investment, annual savings, and costs in the table below. The MARR is 13%. Respond to the following questions: ? ? D Initial Investment 18,000 9,500 31,500 27,500 Savings 6,400 4,000 10,000 7,900 Costs 3,150 2.200 4.200 3,300 What is the Internal Rate of Return (IRR) of alternative A? (use two decimals, format: XX.XX, no % sign)

Expert Solution

The answers to the given question are provided in the order below

=RATE(15,-6400+3150,18000)
=16.1424%

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