A company is considering the purchase of one of the following small devices: A 300 45 Initial Cost Uniform Annual benefit B 600 96 C 200 33 Each alternative has a 10-year useful life. The business uses an MARR of 9%. The Internal Rate of Return (IRR) of Incremental B-A is closest to: Write your answer in percentage % form to the nearest one decimal point (e.g., 12.3)
A company is considering the purchase of one of the following small devices: A 300 45 Initial Cost Uniform Annual benefit B 600 96 C 200 33 Each alternative has a 10-year useful life. The business uses an MARR of 9%. The Internal Rate of Return (IRR) of Incremental B-A is closest to: Write your answer in percentage % form to the nearest one decimal point (e.g., 12.3)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A company is considering the purchase of one of the following small devices:
A
B
300
600
45
96
Initial Cost
Uniform Annual benefit
C
200
33
Each alternative has a 10-year useful life. The business uses an MARR of 9%.
The Internal Rate of Return (IRR) of Incremental B-A is closest to:
Write your answer in percentage % form to the nearest one decimal point (e.g., 12.3)
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