Internal rate of return to determine

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A printed circuit board manufacturer will construct a new plant. The potential sites have the following estimates of income and cost. A plant on Site A would cost $30.2 million (mil) to build, produce $31.6 mil/year in revenues, $22.7 mil/year in expenses, and last 18 years. At Site B construction will cost $34.5 mil with $35.2 mil of revenues per year, $25.2 mil/year in expenses and will also last 18 years. Use the internal rate of return to determine which site should be selected. The MARR is 25% per year.

Reference no: EM132285524

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