Question: What is the IRR of Alternative B? Two mutually exclusive alternatives are being...

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Question: What is the IRR of Alternative B?
Two mutually exclusive alternatives are being
considered. Both have lives of 10 years.
Alternative A has a first cost of $10,000 and
annual benefits of $4,500. Alternative B costs
$25,000 and has annual benefits of $8,800. If
the minimum attractive rate of return is 6%,
which alternative should be selected? Solve the
problem by the Internal Rate of Return
Analysis.
QUESTION: What is the IRR for Alternative B?
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