During the design of a new industrial building, two lighting systems are being considered with...
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During the design of a new industrial building, two lighting systems are being considered with the costs as listed below. Mercury Vapor Fluorescent Lighting Lighting Cost New $24,000 $45,000 Annual $14,000/year $12,500/year Operating Cost Salvage Value $3,000 $6,000 Expected Life 30 years 30 years Use incremental rate of return (IROR) method for comparing alternatives and a MARR of 6% per year. a) What is the Incremental Rate of Return? b) Which lighting systems should you choose
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