Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has...
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Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $90,000 first cost. A similar one with many extra features, B has a $400,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $150,000 per year. Each clicker cutter will last five years. If the MARR is 10 percent, which alternative is better? Use an IRR comparison. percent. For the increment from cutter A to cutter B, the IRR is percent. Therefore, For the increment from the do-nothing alternative to cutter A, the IRR is (Type integers or decimals rounded to one decimal place as needed.) should be chosen. Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $90,000 first cost. A similar one with many extra features, B has a $400,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $150,000 per year. Each clicker cutter will last five years. If the MARR is 10 percent, which alternative is better? Use an IRR comparison. percent. For the increment from cutter A to cutter B, the IRR is percent. Therefore, For the increment from the do-nothing alternative to cutter A, the IRR is (Type integers or decimals rounded to one decimal place as needed.) should be chosen.
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