A company has to make a choice between two alternatives

Reference no: EM13692577

A company has to make a choice between two alternatives. Alternative 1 has a cost of $250000, an annual benefit of $2500 and a life of 8 years. Alternative 2 has a $100000 cost , an annual benefit of $1750 and a life of 4 years. What is the IRR of the difference between the two alternatives, i.e. Alt 1 - Alt 2.

Reference no: EM13692577

Questions Cloud

What is acmes per unit cost for the new shift : Acme computers produce 23,000 personal computers per year using its daytime shift. The fixed cost per year to produce computers is $2,000,000. The total labor costs are $9,109,000. Acme would like to increase their output to $49000 computers by addin..

Contingency theory can be used by an organization to : Contingency theory can be used by an organization to

Types of conflicts and the three loci of conflicts process : What are the three types of conflicts and the three loci of conflicts process? What are the steps of the conflict process? What are the differences between distributive and integrative bargaining? What are the five steps in the negotiation process? W..

Priceless food processing needs to replace a pump : Priceless food processing needs to replace a pump. They have two options. One is to purchase a new pump with a brass impeller and bowl. The second is use a pump from their warhorse that has stainless steel impeller and bowl.

A company has to make a choice between two alternatives : A company has to make a choice between two alternatives. Alternative 1 has a cost of $250000, an annual benefit of $2500 and a life of 8 years. Alternative 2 has a $100000 cost , an annual benefit of $1750 and a life of 4 years. What is the IRR of th..

Difference in amount of depreciation that would be claimed : A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $90,000, and the expected salvage value for depreciation purposes is..

Type of technological changes in health care-cost increasing : Explain whether each of the following types of technological changes in health care is likely to be cost increasing.

Developed a model of a market utilizing supply and demand : Developed a model of a market utilizing supply and demand. What are the dominant variables or parameters? What is surplus and what is shortage? DEMONSTRATE

Determine the cost basis of the three cells : Delivery and insurance charges were $40,000, and installation of the cells cost another $50,000. (Hint: Parts (a) assume the Adjust Cost Basis is the total cost. Part (b) please refer to Table 7.2 MACRS Class Lives and Recovery Periods. Part (c) use ..

User Account

All Pages