What is fuel cells irr if the salvage value is negligible

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Reference no: EM131970493

Problem

A remotely situated fuel cell has an installed cost of $2, 500 and will reduce existing surveillance expenses by $360 per year for ten years. The border security agency's MARR is 9% per year.

a. What is the minimum salvage (market) value after ten years that makes the fuel cell worth purchasing?
b. What is the fuel cell's IRR if the salvage value is negligible?

Reference no: EM131970493

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