Solution-Which project would be worth pursuing

Which project would be worth pursuing

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Question - Vital Enterprises is considering two mutually exclusive projects, X and Y. The initial cost for X is $130,000 and for Y it is $200,000. Benefits in the first year are $20,000 for X, increasing at a rate of 8% p.y. Benefits in the first year are $28,000 for Y, increasing at a rate of 10% per year. The life of the project is 10 years. At a MARR of 13%, which project would be worth pursuing using the concept of incremental IRR?

Reference no: EM133165722

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Which project would be worth pursuing

Reference no: EM133165722

Reference no: EM133165722

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