Which alternative is better

Reference no: EM133366791

North Hills pulp and paper mill is looking at two different options for a new grinding machine. The first, A, has a $200,000 first cost. A similar one with many extra features, B, has a $800,000 first cost. A will save $100,000 per year over the grinder currently in use. B will save $300,000 per year. Each grinder will last seven years. If the MARR is 8 percent, which alternative is better? Use IRR comparison.

Reference no: EM133366791

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