Determine using the internal rates of return criterion

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Automated Welding Services, Inc. (AWS) business has been growing and they need to raise their automation to the next level. They have collected data on five alternative machines/processes for which the data is shown below. Only a single alternative will be selected. AWS uses a 5-year time horizon for project justifications. Provide Spreadsheet formulas.

1. Determine which will offer the largest internal rate of return for AWS.

2. Determine using the internal rates of return criterion with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.

3. What is the difference between parts a and b?

 

Reference no: EM13262982

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