Question: An engineering facility is considering a new machine for its assembly line. Each choice has a 10 year life. A B C Initial Cost $132,000.00

An engineering facility is considering a new machine for its assembly line. Each choice has a 10 year life.

A B C
Initial Cost $132,000.00 $186,000.00 $144,000.00
Annual Benefit $52,000.00 $42,000.00 $56,000.00
Yearly O&M Cost $33,000.00 $12,000.00 $32,000.00
Salvage Value $15,000.00 $9,000.00 $16,000.00

Calculate the IRR for each alternative.

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