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Determine which model should be purchased solely

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Reference no: EM13881969

A food processing company is considering two types of moisture analyzers. Only one can be selected.

The company expects an infrared model to yield a rate of return of 27% per year. A more expensive microwave model will yield a rate of return of 22% per year. If the company's MARR is 19% per year, can you determine which model should be purchased solely on the basis of the overall rate of return information provided? Why or why not?

Reference no: EM13881969

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