Reference no: EM131044932
There are three mutually exclusive alternatives that are candidates for implementation by the Yellow Freight Company’s sorting operations center, and doing nothing is not an option. All alternatives have a life of 10 years, and they have negligible market (salvage) value after 10 years. The firm’s MARR is 10% per year.
Alt A
Capital investment: $740,000
Annual expenses: $361,940
Alt B
Capital investment: $1,840,000
Annual expenses: $183,810
Alt C
Capital investment: $540,000
Annual expenses: $420,000
How much is the IRR of the last increment?
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