Internal Rate of Return Method$-$Two Projects

five$-$year lives. The minimum rate of return is $9\%.$ However, Munch $N^{\text{'}}$ Crunch has funds to invest in only one of the projects.

Delivery Truck

Bagging Machine

Present value factor

Internal rate of return

$\%$

b$.$ The bagging machine rate of return wa

Therefore the recommendation is to invest in the

than the minimum rate of return requirement of $9\%$ while the delivery truck rate of return was

than the minimum rate of return requirement of $9\%.$