Machine will cost $200,000 to purchase and install is expected to last for 12 years, with a salvage value of $40,000 at that time. The O&M annual expenses are expected to be $11,000. This investment is expected to make an annual revenue of $40,000. If MARR=12%, is it justified to purchase the machine. Base your decision on IRR. Does your decision change if itI was based on PW computations?

Answer rating: 100% (QA)

Using IRR set NPV0 02000004000011000PAr1240000PFr12 02000002900011r N r400001r N Using interpol... View the full answer