5. Compare the following two alternatives by the IRR method, given MARR of 6%/year. First find if they are feasible and then compare them with the incremental rate of return (AROR). Alt. Construction cost S Benefits S/yr Salvage S Service Life (yrs) 410,000 55,000 20,000 11 B. 250,000 35,000 10,000 11
5. Compare the following two alternatives by the IRR method, given MARR of 6%/year. First find if they are feasible and then compare them with the incremental rate of return (AROR). Alt. Construction cost S Benefits S/yr Salvage S Service Life (yrs) 410,000 55,000 20,000 11 B. 250,000 35,000 10,000 11
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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