Compare the following two altematives by the IRR method, given MARR of 6'year First find if they are feasible and then compare them with the incremental rate of retum (AROR). Alt. Construction cost S Benefits S/yr Salvage S Service Life (yrs) 410,000 55,000 20,000 B. 250.000 35,000 10,000

Essentials Of Investments
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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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5. Compare the following two altematives by the IRR method, given MARR of 6%/year. First find if they
are feasible and then compare them with the incremental rate of retum (AROR).
Alt.
Construction costS
Benefits S/yr Salvage S
Service Life (yrs)
410,000
55,000
20.000
250.000
35,000
10,000
Transcribed Image Text:5. Compare the following two altematives by the IRR method, given MARR of 6%/year. First find if they are feasible and then compare them with the incremental rate of retum (AROR). Alt. Construction costS Benefits S/yr Salvage S Service Life (yrs) 410,000 55,000 20.000 250.000 35,000 10,000
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