Question: A plant engineer is considering the two types of solar water heating system given in Table P7.45. Table P7.45 The firm's MARR is 12%. On

A plant engineer is considering the two types of solar water heating system given in Table P7.45.
Table P7.45

The firm's MARR is 12%. On the basis of the IRR criterion, which system is the better choice? "Do nothing" is an option.

Initial cost Annual savings Annual maintenance Expected life Salvage valuc Model A 58,000 $900 $150 Model B $12,000 $1.100 $100 20 years 20 years $500 $600

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