$2\mathrm{.}2.$ A cement producing facility are planning to build a new facility that has an expected lives of

$10$ years. Two alternatives plans is shortlisted, however only one will be selected based on

MARR of $15\%.$ Using IRR determine which one will be selected

Alt. A Alt. B

First Cost $$1\mathrm{.}2$M $$0\mathrm{.}8$M

O&M Cost $$30,000$ $$20,000$

Annual Benefits $$350$K $$250$K

Salvage Value $$50,000-$$$20,000$

Please note you need to show the steps for getting full credit. Just selecting the correct option

without showing the steps will result in getting zero points.

A$)$ A

B$)$ B