A company is considering purchasing a new CNC machine The study period is 10 years and the MARR is 15 per year There are two options being considered with the following data Alternatives A B Initial cost $100000 $160000 Annual Expenses $30000 $20000 One time expense at the end of 5 years $20000 Market value at the end of 10 Years $10000 $15000 Using IRR method, which alternative should be selected

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Question: A company is considering purchasing a new CNC machine. The study period is 10 years and the MARR is 15% per year. There are two

A company is considering purchasing a new CNC machine. The study period is 10 years and the MARR is 15% per year. There are two options being considered with the following data:

Alternatives	A	B
Initial cost	$100000	$160000
Annual Expenses	$30000	$20000
One-time expense at the end of 5 years	$20000
Market value at the end of 10 Years	$10000	$15000

Using IRR method, which alternative should be selected?

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