Question: For two mutually exclusive machines, which machine will you select if the MARR is 12% based on the concept of IRR? Years CF for Machine

For two mutually exclusive machines, which machine will you select if the MARR is 12% based on the concept of IRR?

Years CF for Machine A CF for Machine B
0 $ (120,000) $ (148,000)
1 $ 32,000 $ 46,000
2 $ 35,000 $ 49,000
3 $ 38,000 $ 52,000
4 $ 41,000 $ 52,000
5 $ 44,000 $ (52,000)
6 $ (24,000) $ 55,000
7 $ 47,000 $ 55,000
8 $ (21,000) $ (21,000)

Machine A

Machine B

Both need to be rejected.

Both are equally good.

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