In an oil refinery, an equipment is to be installed for the treatment of greenhouse gases and

Question:

In an oil refinery, an equipment is to be installed for the treatment of greenhouse gases and the reduction of emissions. The company requires installing the equipment due to pressure from the government. Two mutually exclusive alternatives have been proposed to rectify the problem:

The life of both alternatives is 10 years and the MARR is 10% per year. Use the IRR method (incrementally) to make a recommendation regarding which alternative to select. Can you list some nonmonetary factors that would make you favor Equipment 7?

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...