QUESTION 1 A business is considering the purchase of one of the following small devices: A. B. Intial Cost Uniform Annual 90 15 24 benefit Each alternative has a 6-year useful life. The business uses an MARR of 12%. The Internal Rate of Return (IRR) of Incremental A-B is closest to: Provide your answer WITHOUT the % sign and round the final answer to the nearest one decimal place (Example: 8.3 for 8.3%)
QUESTION 1 A business is considering the purchase of one of the following small devices: A. B. Intial Cost Uniform Annual 90 15 24 benefit Each alternative has a 6-year useful life. The business uses an MARR of 12%. The Internal Rate of Return (IRR) of Incremental A-B is closest to: Provide your answer WITHOUT the % sign and round the final answer to the nearest one decimal place (Example: 8.3 for 8.3%)
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION 1
A business is considering the purchase of one of the following small devices:
A
B
Initial Cost
90
15
Uniform Annual
benefit
24
Each alternative has a 6-year useful life. The business uses an MARR of 12%.
The Internal Rate of Return (IRR) of Incremental A-B is closest to:
Provide your answer WITHOUT the % sign and round the final answer to the nearest one decimal place (Example: 8.3 for
8.3%)
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