A В Initial cost --$9,000 -$6,000 Salvage value Cash flow (annual) Life (years) 300 3,000 2,700 3

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The two mutually exclusive alternatives shown in the table are available (“do nothing” is also an option). If the MARR = 15% select the better alternative
with an incremental analysis using the IRR method. Given: IRRA = 24.7% and IRRB = 16.6%. State your assumptions.

A
В
Initial cost
--$9,000 -$6,000
Salvage value
Cash flow (annual)
Life (years)
300
3,000
2,700
3
Transcribed Image Text:A В Initial cost --$9,000 -$6,000 Salvage value Cash flow (annual) Life (years) 300 3,000 2,700 3
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