Genuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned

Question:

Genuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosing one of the machines. Cash flow analysis indicates the following:

Machine A Machine B Cash Flow Cash Flow Year ($2,000) ($2,000) 832 832 832 4 3,877 832 2. 3.

What is the internal rate of return for each machine?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...