Question: Question 4. Decide the best machine for the two machine shown in the table below, using Internal Rate of Return (25marks] Start with i=15% Machine

 Question 4. Decide the best machine for the two machine shown

in the table below, using Internal Rate of Return (25marks] Start with

Question 4. Decide the best machine for the two machine shown in the table below, using Internal Rate of Return (25marks] Start with i=15% Machine A Machine B Initial cost Initial cost 103500 Annual revenues 46000 R Annual revenues O&M O&M annual maintenance 12500 Salvage value 10 Useful live Annual O&M maintenance increased 400 OR annually Salvage value Useful live 26400 20760 10 R 60700 O&M 39500 119500

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