Select the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine Y Initial cost $ 400,000.00 $ 500,000.00 Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00 Residual value $ 85,000.00 |$ 100,000.00 Project life 15 years | none Engineering Economic Analysis
Select the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine Y Initial cost $ 400,000.00 $ 500,000.00 Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00 Residual value $ 85,000.00 |$ 100,000.00 Project life 15 years | none Engineering Economic Analysis
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Select the best alternative through
Machine X |Machine Y
Initial cost $ 400,000.00 $ 500,000.00
Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00
Residual value $ 85,000.00 |$ 100,000.00
Project life 15 years | none
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