Question: Model (C) Model (X) Model (Y) Initial Cost $7,500 $10,000 $12,500 Life (years) 4 4 4 Annual Savings $2,500 $2,750 $7,000 Calculate the Internal Rate
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| Model (C) | Model (X) | Model (Y) |
| Initial Cost | $7,500 | $10,000 | $12,500 |
| Life (years) | 4 | 4 | 4 |
| Annual Savings | $2,500 | $2,750 | $7,000 |
- Calculate the Internal Rate of Return for purchasing Model C
- IRRC < 10%
- 10%< IRRC < 20%
- 20%< IRRC < 30%
- Cant calculate it since the future worth of the project is unknown
- Equals MARR
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