Question: A device can be installed to reduce cost . Consider the two options 1. Device A: Costs $12, and saves $3,000 annuallyIts salvage value is
A device can be installed to reduce cost . Consider the two options 1. Device A: Costs \$12, and saves $3,000 annuallyIts salvage value is $1,000 2. Device B: Costs $15,000 and saves $3,000 the first year and increases $500 annuallyIts salvage value is $1700. Calculate: A. (70%) The internal rate of return for Device A and Device B. 1. (30\%) The incremental rate of return
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