Which alternative should be selected based on internal rate

Reference no: EM13199933

A firm is considering two alternatives:
A B
Initial cost $10,700 $7,500
Uniform annual benefits $2,000 $1,600
Salvage value at the end of useful life $600 $200
Useful life 8 years 6 years

At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of return using the least common multiple approach?

Reference no: EM13199933

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