Two mutually exclusive alternatives are under consideration

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Two mutually exclusive alternatives are under consideration. Alt. A will cost exist40,000, provide annual benefits of exist15,000, and a salvage of exist4000 at the end of its 4 year life. Alt. B will cost exist63,000, provide annual benefits of exist21,000, and a salvage of exist5000 at the end of its 4 year life. Use IRR techniques to analyze and make a recommendation. Remember that an incremental approach is needed.

Reference no: EM131583641

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