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)
Answers:

Machine A

Machine B

Both need to be rejected.

Both are equally good.

Could you work the problems out in excel and show the steps you used to get the answer?

thanks for your help!!

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