Determine if the irr for system a

Assignment Help Accounting Basics

Reference no: EM131015325

Consider this data with MARR = 10%. System A System B

Initial Cost 70000 122000

Service Life yrs 5 11

Annual Revenue 19000 19000

1. Why would AW (Annual Worth) be a convenient method here?

2. In order to use the AW approach there is something which must be planned for the future; what is it?

3. What is the AW of each for the given MARR?

4. Based on the result of 3) which is the better investment?

5. Determine if the IRR for System A is higher than 15%.

Reference no: EM131015325

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