Assignment 02 - Comparison and Selection Among Alternatives.pdf

Notice that the irr for both alternatives is 2719 a

Info icon This preview shows pages 2–3. Sign up to view the full content.

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.
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.