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neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.19%. a)If MARR is 15% per year, which alternative is better? b)What is the IRR on the incremental cash flow [i.e., ∆(Y −X)]? c)If the MARR is 27.5% per year, which alternative is better? d)What is the simple payback period for each alternative? e)Which alternative would you recommend? Question 04: A new manufacturing facility will produce two products, each of which requires a drilling operation during processing. Two alternative types of drilling machines (D1 and D2) are being considered for purchase.
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