Question: For two mutually exclusive machines, which machine will you select if the MARR is 10% based on the concept of IRR or B/C ratio? Machine

For two mutually exclusive machines, which machine will you select if the MARR is 10% based on the concept of IRR or B/C ratio?

Machine A: Cash flows for Years 0 to 6: (-$2000), $500, $500, (-$1000), (-$1000), $3500 and $4000.

Machine B: Cash flows for Years 0 to 6: (-$3000), $0, $1000, (-$500), $1800, (-$3500) and $9000.

Machine A

Machine B

Both need to be rejected.

Both are equally good.

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